2574517017496625723277837 001 2019-06-30 001 General Fund 2019-06-30 001 Miscellaneous Plan 2019-06-30 001 Safety Fire Plan 2019-06-30 001 Safety Police Plan 2019-06-30 001 OPEB 2019-06-30 001 2018-07-01 2019-06-30 001 cafr:ProgramRevenuesFromCapitalGrantsAndContributionsMember 2018-07-01 2019-06-30 001 cafr:ProgramRevenuesFromChargesForServicesMember 2018-07-01 2019-06-30 001 cafr:ProgramRevenuesFromOperatingGrantsAndContributionsMember 2018-07-01 2019-06-30 001 General Fund 2018-07-01 2019-06-30 001 Miscellaneous Plan 2018-07-01 2019-06-30 001 Safety Fire Plan 2018-07-01 2019-06-30 001 Safety Police Plan 2018-07-01 2019-06-30 001 OPEB 2018-07-01 2019-06-30 iso4217:USD c:Percentage
 






CITY OF BAKERSFIELD
CALIFORNIA


COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the Fiscal Year Ended June 30, 2019



img3a6e.png





Prepared by the Department of Finance
Randy McKeegan, Finance Director

 




On the Cover
Kit Fox Mural
3200 Buck Owens Blvd 
Photo by Gilbert Vega

CITY OF BAKERSFIELD
Comprehensive Annual Financial Report
Year Ended June 30, 2019

Table of Contents
INTRODUCTORY SECTION PAGE
Table of Contents  i
Letter of Transmittal  iii
GFOA Certificate of Achievement  viii
Organizational Chart  viii
Elected and Administrative Officers  x
FINANCIAL SECTION
Independent Auditors' Report  1
Management Discussion and Analysis  4
Basic Financial Statements
Statement of Net Position  21
Statement of Activities  23
Governmental Funds:
Balance Sheet  27
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position  29
Statement of Revenues, Expenditures and Changes in Fund Balances  31
Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures and Changes in Fund Balances
to the Government-Wide Statement of Activities  33
Proprietary Funds:
Statement of Net Position  35
Statement of Revenues, Expenses and Changes in Fund Net Position  37
Statements of Cash Flows  39
Fiduciary Funds:
Statement of Fiduciary Net Position  45
Statement of Changes in Fiduciary Net Position  46
Notes to the Financial Statements  48
Required Supplementary Information:
Budgetary Information  106
Budgetary Comparison Schedule for the General Fund  107
Budgetary Comparison Schedule for the Transient Occupancy Taxes Fund  108
Budgetary Comparison Schedule for the Community Development Block Grant Fund  108
Budgetary Comparison Schedule for the Gas Tax & Road Fund  109
Defined Pension Plan - Schedules of Changes in Net Position Liability and Related Ratios &
Schedules of Plan Contributions  110
Other Post-Employment Benefits (OPEB) Plan - Schedule of Changes in City's
Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions  113
i

CITY OF BAKERSFIELD
Comprehensive Annual Financial Report
Year Ended June 30, 2019

Table of Contents

 PAGE
Supplementary Information:
Balance Sheet - General Fund  120
Schedule of Revenues by Function - General Fund - Budget & Actual  121
Schedule of Expenditures by Division - General Fund - Budget & Actual  122
Special Revenue Funds:
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 
-Budget & Actual  125
Debt Service Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance 
-Budget & Actual  131
Capital Projects Funds:
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 
-Budget & Actual  133
Internal Service Funds:
Combining Statement of Net Position  136
Combining Statement of Activities and Changes in Net Position  137
Combining Statement of Cash Flows  138
Fiduciary Funds:
Statement of Changes in Assets and Liabilities - Fiduciary Funds Agency  139
Combining Statement of Fiduciary Net Position 
-Private Purpose Trust Funds  140
Combining Statement of Fiduciary Net Position 
-Pension & Other Employee Benefit Trust Funds  141
Combining Statement of Changes in Fiduciary Net Position 
-Private Purpose Trust Funds  142
Combining Statement of Changes in Fiduciary Net Position 
-Pension & Other Employee Benefit Trust Funds  143
Non-Major Governmental Funds
Combining Balance Sheet  144
Combining Statement of Revenues, Expenditures and Changes in Fund Balances  146
Long-term Debt Recorded in Private Purpose Trust Fund  148
ii

CITY OF BAKERSFIELD
Comprehensive Annual Financial Report
Year Ended June 30, 2019

Table of Contents

 PAGE
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years  152
Changes in Net Position - Last Ten Fiscal Years  154
Fund Balances of Governmental Funds - Last Ten Fiscal Years  158
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years  160
Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years  164
Principal Property Taxpayers - Current Year and Nine Years Ago  165
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years  166
Property Tax Rates/Direct and Overlapping Governments - Last Ten fiscal Years  168
Property Taxes Levies and Collections - Last Ten Fiscal Years  170
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years  171
Taxable Sales By Market Groups - Last Ten Fiscal Years  172
Sales Tax Revenue Payers By Industry - 2018 and Ten Years Ago  174
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years  176
Ratio of Outstanding Debt by Type - Last Ten Fiscal Years  178
Direct and Overlapping Debt as of June 30, 2019  180
Computation of Legal Debt Margin  181
Pledged - Revenue Coverage - Last Ten Fiscal Years  182
Demographic and Economic Statistics - Last Ten Fiscal Years  183
Principal Employers - Current Year and Nine Years Ago  184
Full-time Equivalent City Government Employees by Function - Last Ten Fiscal Years  186
Property Value, Construction and Bank Deposits - Last Ten Calendar Years  188
Operating Indicators by Function - Last Ten Fiscal Years  190
Capital Asset Statistics by Function - Last Ten Fiscal Years  192
Schedule of Insurance in Force  194

iii

img40b9.png
December 20, 2019

Honorable Mayor, City Council, City Manager and Citizens of Bakersfield:

I am pleased to submit the City of Bakersfield's (the "City") Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2019 in accordance with the requirements of our Municipal Code which states that a complete financial statement and report be prepared at the end of each fiscal year (Section 2.08.020F).  This report was prepared by the City's Finance Department, which assumes responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. Because the cost of internal control should not exceed anticipated benefits the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. To the best my knowledge and belief, the enclosed data is accurate in all material aspects and is reported in a manner that presents fairly the financial position and results of operations of the City.

The accompanying financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB).  

Brown Armstrong Accounting Corporation, a firm of licensed certified public accountants, performed the annual independent audit. The goal of the audit was to provide reasonable assurance that the basic financial statements of the City are free of material misstatement. The independent auditor concluded, based upon the audit, that the City’s financial statements for the fiscal year ended June 30, 2019, are fairly stated in conformity with GAAP.

The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair representation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report and may be obtained from the City’s website.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A).  This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.  The City of Bakersfield’s MD&A can be found immediately following the report of the independent auditors, which begins at page 1 of the financial section.

GENERAL BACKGROUND

The City of Bakersfield is located approximately one hundred miles north of Los Angeles in the southern San Joaquin Valley.  The City maintains an incorporated area of 151 square miles and has an estimated population of 389,211 as of January 1, 2019.

The City of Bakersfield is a Charter City that offers a full range of City services including:

 • Fire and Police Protection
 • Streets and Infrastructure Maintenance  
 • Planning and Community Development
 • Parks and Recreation Services
 • River & Agricultural Water and Domestic Water Services
iv

 • Municipal Airpark - General Aviation
 • Refuse Collection
 • Wastewater Treatment

As such, this report includes the financial activities of the City of Bakersfield and the Bakersfield Successor Agency. A more detailed discussion of the reporting entity is provided in the notes to the financial statements.

MAJOR INITIATIVES

The transportation projects associated with Thomas Roads Improvement Program (TRIP) continue to progress through the various phases of environmental, design, land acquisition and construction.  The TRIP program uses a combination of local funds, Transportation Impact Fees, and State and Federal road funds, which includes approximately $570 million of Federal earmark funds approved by Congress in 2005.  

The 2018-19 capital budget included over $170 million of funding for the TRIP projects as outlined below:

Centennial Corridor
     (Construction)    $ 163,022,000
24th Street Widening
(Construction)     $     2,500,000
Stockdale/Enos Lane Roundabout
 (Construction)     $     3,500,000
West Beltway
 (Right of Way)     $     1,675,000

The City had three major the TRIP projects under construction during the fiscal year including the 24th Street Widening, the Centennial Corridor Kern River Bridge Improvements, the Centennial Corridor Belle Terrace Bridge reconstruction and the Beltway Operational improvements to State Routes 58 & 99. Supplemental grant awards at both the State and Federal level have resulted in the remaining projects planned to be constructed in the TRIP program to be fully funded, requiring no additional financing or borrowing.

FACTORS AFFECTING FINANCIAL CONDITION

Local Economy and Local Budget Issues - The local economy for the City of Bakersfield shows signs of continued recovery in various areas, including the oil industry, but questions remain as to the sustainability of that growth. Property tax revenues grew by 5.4% in fiscal year 2018-19 and are estimated to increase by an additional 4.0% in fiscal year 2019-20.  The continued uncertainty in existing revenue streams and the need for expanded services prompted the City to initiate a local sales tax measure to increase the City rate by 1 percent. The district add-on tax, called the Public Safety and Vital Services (PSVS) measure, was approved in November 2018 and went into effect April 1, 2019. While the City did not receive a full year of PSVS revenue it did result in an additional $17 million in sales tax funds over and above the standard tax (Bradley -Burns).  The PSVS funds are budgeted and accounted for separately within a sub-fund of the General Fund and have a special oversight committee made up of nine City residents. The funds are to be used to meet thirteen specific priorities (as identified in the ballot measure) to address top community priorities including enhancing public safety, reducing homelessness and bolstering economic development activities. It is anticipated that this new stream of revenue will double the sales tax revenue available to the City. In addition to the increase from the PSVS sales tax, the Bradley-Burns sales tax revenues increased by 7.1% in fiscal year 2018-19 which was due to the continued growth in the local economy previously mentioned. Also, as previously mentioned, the uncertainty of the level of growth has resulted in a slight budgeted increase of 2.0% in the 2019-20 fiscal year.  With these positive trends pointing to a recovery it again needs to be emphasized that there still is a level of uncertainty in the local economy and that the PSVS fund's are designated for the specific goals identified by the voter approved measure. 

The City Council (the Council) continues to support a conservative approach in adopting our budget for 2019-20.  The Council has increased the City’s cash basis reserve by $13 million using the PSVS funds for a total reserve of $26.4 million. Those reserves, along with a $3.5 million facilities reserve fund, provide an improved level of protection for the City.  The Council continued to fund the City’s Other Post-Employment Benefits (OPEB) costs for retiree medical benefits, maintaining the City of Bakersfield’s position as one of the few entities in California that are making serious progress toward fully funding this long-term obligation.

Retirement costs continue to escalate for all employee groups and over the next several years are expected to increase by 67% ($28.9 million) by fiscal year 2024-25.  This dramatic rise is a result of California Public Employees’ Retirement System’s (CalPERS) changes to its actuarial methodology and their lower than projected earnings in
v

previous years.  These methodology changes and resulting rate increases will have a significant impact on retirement costs for the City. Actual CalPERS earnings over the past five years have been 2.4%, 0.6%, 11.2%, 8.6% and 6.7% respectively.  While the recent improvement in returns is a positive sign, the effects of annual investment increases are smoothed over a 30-year period so significant reductions in costs are not expected in the near-term.  CalPERS estimates the impact of the changes and returns will increase our annual retirement benefit costs by approximately $3.0 million to $4.0 million per year for the next five years.  

Long-Term Financial Planning - The City of Bakersfield continues to look forward in meeting our long-term financial and operating needs.  The increasing costs of retirement are of particular concern and continue to be closely examined by the City.  As the City grows both in population and in geographic area, there will be a continued need to evaluate opportunities to become more efficient and effective in our efforts to serve our community. 

The City Council adopted Resolution 91-19 on June 28, 2019 to create a more substantial reserve to help mitigate potential financial downturns as well as create potential avenues to address the increasing concern regarding the growing unfunded pension liabilities.  This resolution created a five-year plan that would increase the General Fund reserve equal to two months of operational costs and begin to fund a Section 115 Pension Rate Stabilization Fund. This plan is subject to the availability of funds and does not lock the City into any contributions that would be detrimental to the operations necessary to serve the needs of the residents of Bakersfield.  

Accounting System and Internal Controls - The City's accounting system is organized and operated on a fund basis with each fund treated as a distinct self-balancing accounting entity. Various funds utilized by the City of Bakersfield are fully described in Note 1 of Notes to the Basic Financial Statements.  The City's accounting records for general governmental operations are maintained on a modified accrual basis of accounting, whereby revenues are recognized when measurable and available and expenditures are recognized when materials and services are received. Accounting records for the enterprise and internal service funds are recorded on an accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred.

In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires estimates and judgments by management.

All internal control evaluations occur within the framework described previously. The City Finance department believes that these internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.  However, the City recognizes that even sound internal controls have inherent limitations. Internal controls must be reviewed to ensure that the City’s operating policies and procedures are being adhered to and that the controls are adequate to assure accurate and reliable financial reporting and to safeguard the City’s assets.

Budgetary Controls - The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Project length financial plans are adopted for the capital projects funds. The level of budgetary control is established at the fund level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Unencumbered amounts lapse at year-end. However, encumbrances and certain capital projects are re-appropriated as part of the following year's budget. The 2018-19 City of Bakersfield appropriation limit established as required by state statute was $408,504,776.

Cash Management - The City maintains a cash and investment pool that is available for use by all funds, except the Fire Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as cash and short-term investments. The deposits and investments of the Fire Relief and Pension Trust Fund are held separately from other City funds.
vi

The City Council has adopted an investment policy in accordance with California Government Code Sections 53607 and 53646, with a goal to minimize credit and market risks while maintaining a competitive yield on its portfolio. The City is also governed by State statutes authorizing the City to invest in bonds or other evidences of indebtedness of the U.S. Government or any of its agencies and instrumentalities, repurchase agreements and bankers’ acceptances. The pension trust investments are administered separately under Municipal Code Section 2.92, which is within state guidelines.
OTHER INFORMATION

Independent Audit - The City Charter requires an annual audit by independent certified public accountants. The City Council also adopted a policy regarding auditor rotation that encourages competitive bidding on a five-year cycle.  The accounting firm of Brown Armstrong Accountancy Corporation was selected by the City Council in 2017 to perform the annual audit for the 2016-17 fiscal year.  This audit year (2018-19) is the third year of the five-year agreement with this firm. 

Awards - The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bakersfield for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2018, marking the thirty-eighth consecutive year Bakersfield has received the GFOA certificate.  The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.

A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

Additionally, the City received the Distinguished Budget Presentation Award for the fiscal year beginning July 1, 2018 from the GFOA. The Distinguished Budget Presentation Award judges a government's budget document for compliance with the guidelines established by the National Advisory Council on State and Local Budgeting and best practices of the GFOA.

Acknowledgments - The preparation of this report on a timely basis could not be accomplished without the efficient services of the entire staff of the Finance Department. I should like to express my appreciation to all members of the Department who assisted and contributed to its preparation. I would also like to thank the Mayor, City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Respectfully,
img04d4.png

Randy McKeegan
Finance Director
vii

img3dbc.png

viii

img24c9.png
ix


CITY OF BAKERSFIELD
June 30, 2019


City Council



Karen K. Goh  .......................................................................................................................Mayor
Willie Rivera  ........................................................................................................Member/Ward 1
Andrae Gonzales ...................................................................................................Member/Ward 2
Ken Weir   .............................................................................................................Member/Ward 3
Bob Smith   ......................................................................................................Vice Mayor/Ward 4
Bruce Freeman   ....................................................................................................Member/Ward 5
Jacquie Sullivan ....................................................................................................Member/Ward 6
Chris Parlier ..........................................................................................................Member/Ward 7


Administrative Personnel



Alan Tandy ............................................................................................................City Manager

Virginia Gennaro ...................................................................................................City Attorney
Phil Burns (Interim) .................................................................... Development Services Director
Randy McKeegan ...............................................................................................Finance Director
Anthony Galagaza........................................................................................................Fire Chief
Lyle Martin ..............................................................................................................Police Chief
Nick Fidler ..............................................................................................Public Works Director
Dianne Hoover ...............................................................................Director Recreation & Parks
Art Chianello ....................................................................................Water Resources Manager
x

1

CITY OF BAKERSFIELD
Management's Discussion and Analysis
This discussion and analysis of the City of Bakersfield’s (City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2019. We encourage readers to consider the information presented here in conjunction with the accompanying letter of transmittal, the basic financial statements, and the accompanying notes to those financial statements.  

FINANCIAL HIGHLIGHTS

The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $2.0 billion (net position). 
The City’s total net position increased by $438.2 million over the prior fiscal year.  This increase is attributable to a $1.8 million decrease in restricted net position and a $6.8 million increase in unrestricted net position, offset by a $35.0 million increase in capital assets investment. Prior year information presented in this section does not take into account restatements made to fiscal year 2017-18 balances for prior period adjustments (see Note 23). 
As of the close of the current fiscal year, the City's Governmental Funds reported combined ending fund balances of $186.5 million, an increase of $12.7 million in comparison with the prior year.  Amounts available for spending include restricted, committed, assigned and unassigned fund balances.  Of this amount, $19.0 million is restricted by law or externally imposed requirements, $110.5 million is committed for specific purposes, $51.4 million is assigned and $4.7 million is unassigned and available.
Available fund balance for the General Fund increased $15.6 million to $54.6 million, which equates to 26.3% of total General Fund expenditures for the year.
The City's long-term debt showed an increase of $15.0 million during the current fiscal year.
4

CITY OF BAKERSFIELD
Management's Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.  This report also contains other supplementary information in addition to the basic financial statements themselves.  

GOVERNMENT-WIDE FINANCIAL STATEMENTS

The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.  The statements present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately.  Additionally, certain eliminations have occurred as prescribed by the Governmental Accounting Standards Board (GASB) statements in regards to interfund activity, payables and receivables. 

The Statement of Net Position and the Statement of Activities provide information about the City as a whole and its activities through the fiscal year. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.

These two statements report the City's net position and changes in it. Net position is the difference between assets deferred outflows of resources, liabilities, and deferred inflows of resources providing a measurement of the City's financial health. Over time, increases or decreases in the City's net position can be an indicator of whether its overall financial health is improving or deteriorating. Other factors to consider are changes in the City's property tax base and sales tax base. The government-wide financial statements do not include the fiduciary funds, which comprise the private purpose trust funds, pension trust funds, and agency funds. Resources in the fiduciary funds are generally not available to support the City’s own programs.

In the Statement of Net Position and the Statement of Activities, we separate the City activities as follows:

Governmental activities - Most of the City's basic services are reported in this category, including the General Government, Police, Fire, Public Works, Recreation & Parks and Development Services. These activities are generally financed by property and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants.

Business-Type activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City's Water, Wastewater, and Refuse Collection systems along with the Municipal Airport and Offstreet Parking activities are reported in this category.

5

CITY OF BAKERSFIELD
Management's Discussion and Analysis
FUND FINANCIAL STATEMENTS

A fund is a specific grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. The fund financial statements provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. Management establishes many other funds to help control and manage financial resources for particular purposes, or to show that the City is meeting legal responsibilities when using certain taxes, grants, and other revenue.

These financial statements include statements for each of the three categories of activities – governmental, proprietary and fiduciary.  The governmental activities are prepared using the current financial resources measurement focus and modified accrual basis of accounting.  The proprietary activities are prepared using the economic resources measurement focus and the accrual basis of accounting.  The fiduciary activities are agency funds that also use the economic resources measurement focus but only report a balance sheet.  Reconciliation of the Governmental Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach.

Governmental Funds -  Most of the City's basic services are reported in governmental funds, which focus on the flow of resources into and out of those funds with the balances remaining at year-end available for appropriation. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental Fund financial statements focus on near-term inflow and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. To facilitate comparisons, the differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation schedule following the Governmental Fund financial statement.

Proprietary Funds - Proprietary Funds are used to report services the City charges for, whether to external customers or units within the City. Proprietary Funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City's Enterprise Funds report the same functions as the business-type activities reported in the Government-Wide financial statements, but provide more detail and additional information, such as cash flows. The City uses Internal Service Funds (the second component of Proprietary Funds) to report activities that provide supplies and services for the City's other programs and activities. This includes the City's Self-Insurance and Equipment Management Funds. These services primarily benefit governmental rather that business-type functions so a majority of the related operation costs are included with the governmental activities in the Government-Wide financial statements.

Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City's fiduciary activities are reported in separate Statements of Fiduciary Net Position. These activities  are excluded from the City's other financial statements because these resources are not available to support the City's programs or operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

NOTES TO THE FINANCIAL STATEMENTS

The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund financial statements. The notes can be found starting on page 48 of this report.

OTHER INFORMATION

In addition to the basic financial statements and accompanying notes, this report also presents certain “Required Supplementary Information” concerning the City's progress in funding its obligation to provide pension benefits and other post-employment benefits (OPEB) to its employees and budgetary comparison schedules for the General Fund and Special Revenue Major Funds. This information can be found starting on page 106 of this report.
6

CITY OF BAKERSFIELD
Management's Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS

As previously noted, net position may serve over time as a useful indicator of a government’s financial position.  In the current year, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.0 billion at the close of the reporting period, which is a $0.4 million decrease, or 11%, in comparison with the prior year.  

The largest portion of the City’s net position relates to its net investment in capital assets of $2.0 billion (e.g., land, buildings, machinery, infrastructure and equipment), less any related debt used to acquire those assets that is still outstanding.  These capital assets are used to provide services to citizens; as such, these assets are not available for future expenditures. The City’s net investment in capital assets is reported net of related debt, though it should be noted that the resources needed to repay this debt must be provided from other sources as the capital assets themselves cannot be used to service this debt.

A small portion of the City’s net position, $39.2 million (2.0% of the total), represents resources that are subject to external restrictions on how they may be used.  

As in the prior year, the City is able to report positive balances in both categories of net position, whether for the City as a whole or for its separate Governmental and Business-type activities.

The following table presents the components of the government-wide Statement of Net Position at the end of the fiscal year for both 2018 and 2019. The governmental and business-type activities columns reflect amounts that have been restated in this financial report.  Note 23 explains any prior period adjustments that changed net position.
 

City of Bakersfield - Net Position


(in thousands)





Governmental Activities
Business-Type Activities
Total

2018
2019
2018
2019
2018
2019
Assets
Current and other assets
$308,835
$326,209
$190,148
$189,182
$498,983
$515,391
Capital assets (net)
1,315,194
1,330,859
878,477
890,918
2,193,671
2,221,777
Total assets
1,624,029
1,657,068
1,068,625
1,080,100
2,692,654
2,737,168
Deferred Outflows of Resources
112,429
95,296
20,589
17,511
133,018
112,807
Liabilities
Long-term liabilities
outstanding
544,274
536,281
238,059
230,239
782,333
766,520
Other liabilities
44,493
49,003
19,666
15,683
64,159
64,686
Total liabilities
588,767
585,284
257,725
245,922
846,492
831,206
Deferred Inflows of Resources
26,311
25,794
2,809
3,032
29,120
28,826
Net Position
Net investment in capital assets
1,301,335
1,316,113
700,725
720,818
2,002,060
2,036,931
Restricted
20,760
18,976
20,200
20,200
40,960
39,176
Unrestricted
(200,715)
(193,802)
107,755
107,638
(92,960)
(86,164)
Total Net Position
$1,121,380
$1,141,287
$828,680
$848,656
$1,950,060
$1,989,943

7

CITY OF BAKERSFIELD
Management's Discussion and Analysis
Governmental Activities – Total assets for governmental activities increased by $33.0 million, with current and other assets in governmental activities increasing by $17.4 million and a capital assets increase of $15.7 million. Total liabilities decreased by $3.5 million, with other liabilities increasing by $4.5 million and long-term liabilities decreasing by $8.0 million.  

Of the $19.9 million increase in governmental activities total net position, unrestricted net position increased by $6.9 million,  net investment in capital assets increased by $14.8 million and restricted net position decreased by $1.8 million. The decrease in unrestricted net position stems primarily from the continued rise is pension liabilities.

Business-Type Activities – Total assets for business-type activities increased by $11.5 million, with current and other assets decreasing by $1.0 million and a $12.4 million increase in capital assets.  Total liabilities decreased by $11.8 million, with other liabilities decreasing by $4.0 million and long-term liabilities also decreasing by $7.8 million.  Total net position for business-type activities increased by $20.0 million.  Of that amount, net investment in capital assets increased by $20.1 million.  Restricted net position remained constant and unrestricted net position decreased by only $0.1 million. The overall increase in net position is the result of completed improvement projects in the Wastewater, Refuse and Agriculture Water funds offset by the continued increases in pension related liabilities and the recording of other post-employment benefit liabilities.

Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2018 and 2019.  The City’s total  revenues of $508.4 million were more than expenses of $467.0 million for an increase in net position before transfers & other items of $41.4 million.  The governmental and business-type activities columns reflect amounts that have been restated in this financial report. Note 23 explains any prior period adjustments that changed net position.


City of Bakersfield - Changes in Net Position


(in thousands)


Governmental Activities
Business-Type Activities
Total

2018
2019
2018
2019
2018
2019
Revenues:
Program revenues:
Charges for services
$55,401
$57,472
$119,148
$125,940
$174,549
$183,412
Operating grants and
contributions
9,166
11,411
9,047
8,407
18,213
19,818
Capital grants and
contributions
85,533
78,709
4,914
11,978
90,447
90,687
Total program revenues
150,100
147,592
133,109
146,325
283,209
293,917
General revenues:
Taxes:
Property taxes
79,774
83,544
-
-
79,774
83,544
Sales taxes
72,322
94,622
-
-
72,322
94,622
Other taxes
1,309
1,525
-
-
1,309
1,525
Intergovernmental:
Intergovt, unrestricted
202
186
-
-
202
186
Grants and contributions not
restricted to specific programs
25,141
25,238
-
-
25,141
25,238
Investment earnings
1,296
2,709
1,879
5,046
3,175
7,755
Miscellaneous
1,754
1,475
-
-
1,754
1,475
Gain on sale of property
249
101
20
25
269
126
Total Revenues
332,147
356,992
135,008
151,396
467,155
508,388
8

CITY OF BAKERSFIELD
Management's Discussion and Analysis

City of Bakersfield - Changes in Net Position


(in thousands)


Governmental Activities
Business-Type Activities
Total

2018
2019
2018
2019
2018
2019
Expenses:
Governmental:
General government
29,731
31,112
-
-
29,731
31,112
Public safety - Police
105,006
106,341
-
-
105,006
106,341
Public safety - Fire
44,561
46,537
-
-
44,561
46,537
Public works
145,530
126,436
-
-
145,530
126,436
Recreation and parks
22,614
20,686
-
-
22,614
20,686
Development services
8,534
8,221
-
-
8,534
8,221
Interest on long-term debt
25
17
-
-
25
17
Subtotal - Governmental
356,001
339,350
-
-
356,001
339,350
Business-Type:
Wastewater treatment
-
-
42,104
43,492
42,104
43,492
Refuse collection
-
-
47,971
52,077
47,971
52,077
Agricultural water
-
-
4,198
4,470
4,198
4,470
Domestic water
-
-
29,205
26,859
29,205
26,859
General aviation
-
-
671
480
671
480
Offstreet parking
-
-
234
291
234
291
Subtotal - Business-Type
-
-
124,383
127,669
124,383
127,669
Total expenses
356,001
339,350
124,383
127,669
480,384
467,019
Change in net position before
transfers & other items
(23,854)
17,642
10,625
23,727
(13,229)
41,369
Transfers
2,033
339,351
(2,033)
57,472
-
396,823
Extraordinary gain from litigation settlement
-
-
54,231
-
54,231
-
Changes in net position
(21,821)
356,993
62,823
81,199
41,002
438,192
Net Position - Beginning of
Year (as restated)
1,143,201
1,119,588
765,857
828,988
1,909,058
1,948,576
Net Position - End of Year
$1,121,380
$1,476,581
$828,680
$910,187
$1,950,060
$2,386,768

Governmental Activities – The results in governmental activities caused an increase in the City’s net position by $357.0 million during the year.  In the graph below, the difference between the program revenue and expenses by activity illustrates the amount each respective activity is supported by program revenues.  Public Safety and Recreation and Parks service delivery costs exceeded program revenues by $138.0 million and $0.7 million, respectively.  Public Safety programs rely heavily on taxes to support their operations whereas Recreation and Parks relies on both taxes and charges for services to support their operations.  This fiscal year Public Works service delivery costs exceeded program revenues by $30.3 million because a significant portion of its services are also tax supported.
9

CITY OF BAKERSFIELD
Management's Discussion and Analysis
img1608.pngTotal expenses in Governmental Activities had a net decrease of $16.7 million from the previous fiscal year for an overall 4.7% decrease. The largest increases were in Public Safety – Police and Public Safety – Fire, which increased by $1.3 million and $2.0 million, respectively, and in General Government with an increase of $1.4 million. These increases are primarily related to increases connected to California Public Employees' Retirement System (CalPERS) rates in the current year. These changes were offset by a decrease of $19.1 million in Public Works, which is primarily due to less expenditures incurred from capital improvement projects. 
10

CITY OF BAKERSFIELD
Management's Discussion and Analysis
The taxes category is the largest revenue source for governmental activities, amounting to $179.7 million or 50.3% of total revenues.  Capital grants and contributions is also a significant revenue source for the City’s governmental activities, amounting to $78.7 million or 22.0% of total revenues.  The third most significant sources of revenue is charges for services, amounting to $57.5 million or 16.1% of total revenues.

Governmental Activities Revenues decreased $24.8 million which is a 7.5decrease compared to the previous fiscal year.  This decrease is due primarily to a 15.0%, or $27.4 million, increase in General Revenues, offset by a 1.7%, or $2.5 million, decrease in Program Revenues.  

General Revenues - Sales tax revenues increased by 30.8%, or $22.3 million, while property taxes increased by 4.7%, or $3.8 million. The primary reason for this increase is from the Public Safety and Vital Services (PSVS) district tax which is a new source of revenue that was approved by residents in November 2018. There has also been a slight recovery in general sales tax revenue related to recent improvements in the oil industry with its related impacts on the local economy and an improvement in consumer confidence.  

Program Revenues - Capital Grants and Contributions decreased by $6.8 million due to a reduction in special projects funded in Public Works compared to the prior year. The most significant reduction is related to the Thomas Roads Improvement Program (TRIP) projects which included less activity related to construction and property acquisition when compared to the previous year. Operating Grants and Contributions increased $2.2 million with the majority of the increase due to more entitlement funds received from the Department of Housing and Urban Development in the current year and an increase in State grants received to address the homelessness issues within the City.
graph7c07.png
11

CITY OF BAKERSFIELD
Management's Discussion and Analysis

Business-Type Activities – The City operates six Enterprise Funds that offer wastewater services, refuse collection, river & agricultural water, domestic water to City residents, downtown parking and a municipal airport.
img5605.png
Business-type activities increased the City’s net position by $81.2 million during the current year. The chart above compares total program revenues and expenses. 

Program revenues exceeded program expenses in Wastewater Treatment by $6.9 million, Refuse Collection by $2.4 million,  River & Agricultural Water by $5.3 million, and Domestic Water by $4.2 million These increases were offset slightly by program expenses exceeding program revenues in both the Airpark and Offstreet Parking funds by $156 thousand in total.  

Total expenses increased by $3.3 million (2.6%) over the prior year. 

The following chart illustrates the distribution of business-type revenues by category. The City’s business-type activities rely heavily on charges for services to fund their operations, making up 83.2% of total revenues. Capital grants and contributions is the second largest revenue source at 7.9% of total revenues.
12

CITY OF BAKERSFIELD
Management's Discussion and Analysis

Business-Type activities program revenues increased by $13.2 million, 9.9%, over the prior year.  The majority of this can be attributed to an increase in Refuse Collection service revenue of $3.2 million which was due to rate increases and additional residential service customers.  There were also increases in revenue in Domestic Water of $2.8 million, which was also connected to an increase in rates, and $2.7 million in River & Agricultural Water, for a large one-time sale of surplus water supplies.  An increase in the Wastewater Treatment revenue was primarily connected to a rise in capital contributions of $5.9 million from more development in the area and consequently increases in related infrastructure added in the current year for that activity.  

FINANCIAL ANALYSIS OF THE CITY’S FUNDS 

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
A fund is created and segregated for the purpose of carrying out specific activities or attaining specific objectives in accordance with special regulations, restrictions, or limitations.  Activity not required to be reported in a separate fund is included in the General Fund.

Governmental Funds - The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spendable resources.  Such information is useful in assessing the City's financing requirements.  In particular, unassigned fund balance may serve as a useful measure of the City’s available resources as it represents the portion of fund balance which is not limited to use for a particular purpose by an external party, City management or City Council.

As of the end of the current fiscal year, the City’s Governmental Funds reported combined ending fund balances of $186.5 million, an increase of $12.7 million in comparison with the prior year.  The components of total fund balance are as follows (for more information see Note 14 – Fund Balances):
Nonspendable fund balance, $1.0 million, are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of prepaid expenses and deposits.
13

CITY OF BAKERSFIELD
Management's Discussion and Analysis
Restricted fund balance, $19.0 million, consists of amounts with constraints put on their use by external creditors, grantors, contributions, laws, regulations or enabling legislation.  Examples of restrictions on funds are those for (1) $12.9 million for the purpose of the fund (i.e., Gas Tax and Road projects), (2) $2.2 million from the Redevelopment Successor Agency Housing Fund for projects and (3) $2.9 million for traffic safety projects.
Committed fund balance, $110.5 million, are amounts for specific purposes determined by the Bakersfield City Council, such as funds collected from fees paid to mitigate the traffic impacts to the regional circulation system of $51.6 million and funds set aside by City Council in the General Fund for cash basis/emergency reserves of $26.5 million. 
Assigned fund balance, $51.4 million, for funds set aside by management for specific purposes. Amounts include $28.0 million set aside for capital projects and $1.0 million for the fund purposes related to transient occupancy fees, and $19.8 million for appropriations for next year’s budget.
Unassigned fund balance, $4.7 million, represents the residual classification for the City’s General Fund.

General Fund:  The General Fund is the chief operating fund of the City.  At the end of the current fiscal year, the General Fund’s total fund balance increased by 40.0%, or $15.6 million from $39.5 million to $54.6 million. The following detail of changes from the prior year explains this change in fund balance for the year:

Total operating revenues increased by $27.6 million (13.9%). Property Tax revenue increased by $4 million due to continuation of higher assessed values within the City limits. Sales Tax revenue had the most significant increase with the new PSVS district tax adding $17.1 million. The base (Bradley-Burns) sales tax revenue showed that there was some level of recovery to the local economy after successive years of declines resulting in a total increase in Sale Tax of $22.3 million. All other revenue sources within the General Fund remained fairly consistent compared to the previous fiscal year. 
Total expenditures increased by $9.4 million (a 4.7% increase). This was due to increases in the Public Safety costs in both Police and Fire expenditures related to filling vacancies ($8.2 million and $1.0 million, respectively).  This increase was offset by a $1.8 million decrease in Public Works expenditures, specifically in the General Services division, due to a decrease in major projects within the General Fund. Overall personnel expenditures also increased throughout all General Fund departments due to increases in pension costs.

Other governmental funds:  As compared with the prior year, the total fund balances of the remaining governmental funds decreased by 2.2%, or $2.9 million, to $131.9 million with the following significant changes:

The Gas Tax and Road Fund decreased by $2.3 million from $15.2 million to $12.9 million. Amounts in this fund are restricted by state and federal statute.  The decrease is due to multiyear projects winding down and others in various stages of completion.
The Capital Outlay Fund decreased by $0.5 million from $56.1 million to $55.6 million.  Of this amount, $23.0 million is committed for contractual obligations and $3.6 million is committed for facility replacement.  The remaining amount of $28.0 million is assigned and available for use at management’s discretion. The resulting decrease shows that expenditures were in line with projected revenues.
The Park Improvement Fund decreased by $0.5 million. Of this amount, $4.8 million is committed for contractual obligations. The decrease in fund balance is from increases in expenditures for phase III of the Sports Village Complex upgrades.
The Transportation Development Fund increased by $0.7 million from $50.8 million to $51.6 million. The entire amount of $51.6 million is committed for contractual obligations and/or current projects. The resulting slight increase shows that expenditures were in line with projected revenues.

Proprietary Funds - The City’s Proprietary Funds are shown in their entirety in the government-wide financial statements.  All funds are being reported as major funds, so there is no need to report additional detail elsewhere in the document.  

The Wastewater Treatment Fund has total net position of $532.6 million at the end of the current year, an increase of $8.2
14

CITY OF BAKERSFIELD
Management's Discussion and Analysis
million over the prior year. Total net position includes $466.3 million net investment in capital assets and $20.2 million of restricted assets which are not available to cover current expenses. The remaining net position of $46.1 million is unrestricted and available to cover current operating and capital needs (including plant and equipment replacement) of the fund. The majority of the increase resulted from more development completed to infrastructure in the current year which was reflected in a $9.7 million addition in Capital Contributions and an overall increase in the Net Investment in Capital Assets of  $5.6 million.

The Refuse Collection Fund has total net position of $0.6 million at the end of the current year, a decrease of $1.7 million from the prior year.  The decrease is due to less revenue collected from residential services/rates than is necessary to cover the operating costs of the division along with the pension and OPEB costs that are being reported as part of new accounting requirements. Further review of the rates charged to customers will occur to establish a rate sufficient to cover these costs in future years and to address the deficit in net position. 

The River and Agricultural Water Fund has total net position of $28.9 million at the end of the current year, an increase of $4.9 million over the prior year.  Total net position includes $18.0 million net investment in capital assets, which is not available to cover current expenses.  The remaining net position of $10.9 million is unrestricted and available to cover current operating and capital needs of the fund. As in the prior year, revenues were more than sufficient to cover the fund costs resulting in this continued increase in net position.

The Domestic Water Fund has total net position of $271.1 million at the end of the current year, an increase of $6.0 million over the prior year.  Total net position includes $220.9 million net investment in capital assets, which is not available to cover current expenses.  The remaining net position of $50.2 million is unrestricted and available to cover current operating and capital needs of the fund.

The General Aviation Fund has total net position of $11.5 million at the end of the current year, a decrease of $2,538 compared to the prior year.  Total net position includes $10.7 million net investment in capital assets, which is not available to cover current expenses.  The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.

The Offstreet Parking Fund has total net position of $1.1 million at the end of the current year, a decrease of $83,667 compared to the prior year.  Total net position includes $1.0 million net investment in capital assets, which is not available to cover current expenses.  The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.  
15

CITY OF BAKERSFIELD
Management's Discussion and Analysis
CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets - The City’s investment in capital assets for its governmental and business-type activities as of June 30 of the current fiscal year amounts to $2.2 billion (net of accumulated depreciation).  This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, highways, bridges and construction in progress.  The total increase in the City’s investment in capital assets for the current fiscal year was $28.1 million.  Of this amount, a $15.7 million increase relates to Governmental Activities and a $12.4 million increase that relates to Business-Type Activities.  Depreciation expense of $92.7 million was less than capital assets by this amount.

These financial statements include infrastructure assets constructed or acquired through fiscal year 2018-19.

Major capital asset events during the current fiscal year included the following:

A variety of street construction projects and rehabilitation of major arterial streets.  Construction in progress for governmental activities as of the end of the current fiscal year is $105.6 million.  This figure includes over $103.7 million towards major street construction, traffic signals, and resurfacing projects throughout the City.

The City added over $24.9 million in new streets and roads primarily due to new residential developments completed in the current year.  These newly constructed right of ways are transferred over to the City by the various developers when the work is finalized.


City of Bakersfield - Capital Assets


(in thousands)


Governmental Activities
Business-Type Activities
Total

2018
2019
2018
2019
2018
2019
Land and water storage rights
$448,510
$449,360
$23,621
$23,630
$472,131
$472,990
Depreciable buildings, property,
equipment and infrastructure, net
761,971
775,947
779,943
779,191
1,541,914
1,555,138
Construction in progress
104,713
105,552
43,436
56,621
148,149
162,173
Non-amortizable intangible assets
-
-
31,477
31,477
31,477
31,477
Total Capital Assets
$1,315,194
$1,330,859
$878,477
$890,919
$2,193,671
$2,221,778

16

CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Outstanding Debt
City of Bakersfield - Outstanding Debt



Balance
Incurred
Satisfied
Balance

June 30, 2018
or Issued
or Matured
June 30, 2019
Governmental Activities
Loans Payable
$2,584,240
$4,136,541
$(609,305)
$6,111,476
Certificates of Participation*
11,275,000
-
(2,640,000)
8,635,000
Total governmental activities
$13,859,240
$4,136,541
$(3,249,305)
$14,746,476
Business-Type Activities
Revenue Bonds Payable
$166,998,212
$-
$(6,868,638)
$160,129,574
Loans Payable
2,256,378
-
(752,126)
1,504,252
Total business-type activities
$169,254,590
$-
$(7,620,764)
$161,633,826
Total Debt
$183,113,830
$4,136,541
$(10,870,069)
$176,380,302
* Certificates of Participation in governmental activities are debt of the former Redevelopment Agency that is now reported as City debt.
 
Long-Term Debt - At the end of the current fiscal year, the City had a total debt outstanding of $176.4 million.  The City’s total debt decreased by a net amount of $6.7 million during the current fiscal year.  This amount is the result of normal debt maturities
Certificates of Participation issued by the City via the former Redevelopment Agency in 2006 carry a Reserve Fund Surety from Ambac Assurance Company (Ambac). Moody’s Investor’s Service (Moody’s) rating on Ambac is currently “Baa1”.  The current underlying rating on the Certificates of Participation has not been revised (currently “A1”).  This rating on the Certificates of Participation reflects only the view of Moody’s, and any desired explanation of the significance of such rating should be obtained from Moody’s.  There is no assurance that such rating will continue for any given period of time or that such rating will not be revised or withdrawn by Moody’s if, in the judgment of Moody’s, circumstances so warrant.

The 2015 Wastewater Revenue Bonds – Series A,  issued by the City in 2015, which redeemed a majority of the 2007 Wastewater Revenue Bonds – Series A, has an “Aa2” rating from Moody’s and an "AA" rating from Standard & Poors. There is no assurance that such ratings will continue for any given period of time or that such ratings will not be revised or withdrawn by the rating agencies if, in their judgment, circumstances so warrant.

More detailed information regarding capital asset and long-term debt activity can be found in the related notes to the financial statements.  See Note 5 for capital assets and Note 11 for long-term debt.
17

CITY OF BAKERSFIELD
Management's Discussion and Analysis

GENERAL FUND BUDGETARY HIGHLIGHTS

Differences between the original budget and the final amended budget reflect an increase in resources of $22.9 million and an increase in appropriations of $10.1 million.  Significant budgetary amendments (changes) are summarized as follows:

$0.9 million increase in various resources and appropriations due to revenues associated with open purchase orders at the end of the previous fiscal year.  Also, $1.3 million increase in various resources due to revenues associated with prior year appropriations not spent and carried forward to this fiscal year.
$17.5 million was added to the budget for the new PSVS district sales tax approved by the residents of the City to address needs throughout Bakersfield including public safety, economic development and homelessness. 
$1.2 million increase in resources and appropriations for State for the Homeless Emergency Aid Program (HEAP) specifically awarded to the the Development Services department to deal with the growing problem in the area.
$0.7 million increase in resources and appropriations for grant related projects in the Police Department. 

The final amended revenue estimate budget figures in the General Fund were lower than actual revenue by $11.0 million and appropriations were higher than actual expenditures by $8.0 million. Significant differences between budget and actual amounts are as follows:

$10.1 million positive variance in tax revenue.  This is the result of an increase in property tax revenue and sales and use tax revenue. Property tax revenue was initially estimated to increase while Sales tax revenue were not expected to increase at the level experienced. Projections for tax revenue were conservative in nature because of uncertainty throughout the year on the level and sustainability of economic recovery in the area.
$1.9 million less than budgeted in intergovernmental revenue which is due primarily to this source of funds being based on reimbursement of expenditures incurred. Some of the project activity for these awards had not moved forward resulting in less revenue being recognized.
$1.8 million variance of appropriations over actual expenditures in Public Safety-Fire.  The savings are due primarily to salary and benefit savings from unfilled positions plus some grant funded projects that were budgeted but not started.
$4.9 million variance of appropriations over actual expenditures in Departments other than Fire are also due primarily to salary and benefit savings from unfilled positions.

18

CITY OF BAKERSFIELD
Management's Discussion and Analysis
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The key assumptions in the General Fund revenue forecast for fiscal year 2019-20 were:

1.Property tax revenue is projected to grow at 4% which is the same level as last year’s estimate as projected by Kern County.
2.Sales and use tax revenue is projected to show a slight increase of 2% in fiscal year 2019-20, which is again the same estimate made for fiscal year 2018-19. Sales and use tax revenues are difficult to project this year because of slowdowns in previous years in the oil and gas industry, both locally and globally, and the economy as a whole.  While the economy has shown growth in recent years, the City continues to take a conservative approach on the expectations of the sustainability and levels of that growth. 
3.California Public Employees’ Retirement System (CalPERS) approved new policies last year which have raised rates approximately 10% for next fiscal year.  Similar increases are projected for the next five fiscal years.

New items specifically addressed in the 2019-20 budget include the following:

Police Department – The Police Department’s operating budget has increased from fiscal year 2018-19 by 16.8%, totaling $15.7 million.  This increase is primarily attributable to increased costs related to the PSVS plan to increase the number of officers and support staff in the department over the next three years.
Fire Department – The Fire Department's operating budget had a 9.2% increase from fiscal year 2018-19 totaling $3.8 million. This increase is primarily due to the implementation of the PSVS driven plan to increase staffing by 11 in the upcoming year. 
Public Works - The Public Works Department operating budget increased by $6.7 million, or 5.4%, from fiscal year 2018-19. The budget included an addition of 7 employees (non-PSVS) as well as some operational increases related to PSVS. The increase was also due to the CalPERS rate escalations as well as an increases in staffing in areas covered by non-General fund revenue, specifically in operations for refuse and fleet services. In addition, there was a significant need for specific equipment to be replaced for non-General fund services that were well beyond their normal life cycle.
Development Services – The Development Services Department’s operating budget has increased from fiscal year 2018-19 by 56.4%, totaling $6.1 million.  This significant growth is due almost exclusively to PSVS related plans in the department to add rapid response teams to address homelessness and establish an economic development team to foster further growth in the City. 
Recreation and Parks – The Recreation and Parks Department’s operating budget has increased from fiscal year 2018-19 by 11.5%, totaling $2.4 million.  This increase is in part also related to a PSVS program to establish a rapid response team in this department to address homeless issues in City Parks. It is also due to the increase in CalPERS rates resulting in higher benefit costs.

CONTACTING THE CITY'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information can be sent via e-mail to: finance@bakersfieldcity.us. Formal written requests should be addressed to: City of Bakersfield, Attn:  Finance Department, 1600 Truxtun Avenue, Bakersfield, CA  93301.

19

Government-Wide Financial Statements

20

Statement of Net Position
June 30, 2019

Governmental Activities
Business-Type Activities
Total
Assets:
Current assets:
Cash and investments
$205,169,958
$170,601,357
$375,771,315
Accounts receivable, net
23,506,116
11,565,786
35,071,902
Interest receivable
1,086,096
818,965
1,905,061
Notes/loans receivable - current
410,846
-
410,846
Due from other governmental agencies
70,445,960
1,753,297
72,199,257
Internal balances
(4,065,513)
4,065,513
-
Prepayments and inventories
2,065,796
-
2,065,796
Total current assets
298,619,259
188,804,918
487,424,177
Noncurrent assets:
Capital assets:
Land
449,359,733
23,630,085
472,989,818
Depreciable capital assets, net
775,947,368
779,190,704
1,555,138,072
Construction in progress
105,552,305
56,620,687
162,172,992
Non-amortizable intangible assets
-
31,476,906
31,476,906
Land held for resale
1,198,744
-
1,198,744
Notes/loans receivable
26,390,855
376,678
26,767,533
Total noncurrent assets
1,358,449,005
891,295,060
2,249,744,065
Total assets
1,657,068,264
1,080,099,978
2,737,168,242
Deferred Outflows of Resources:
Deferred pensions (See Note 16)
87,796,456
7,005,087
94,801,543
Deferred OPEB (See Note 17)
7,499,485
1,300,738
8,800,223
Debt issuance
-
9,204,816
9,204,816
Total deferred outflows of resources
95,295,941
17,510,641
112,806,582
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
24,048,367
10,280,954
34,329,321
Customers' deposits
-
4,952,712
4,952,712
Advances from grantors and third parties
24,954,186
449,371
25,403,557
Total current liabilities
49,002,553
15,683,037
64,685,590
Noncurrent liabilities:
Due within one year:
Long-term debt
4,003,689
8,050,764
12,054,453
Capital leases payable
-
670,701
670,701
Kern River Levee District/Buena Vista
-
314,215
314,215
Claims and judgments payable
12,705,801
-
12,705,801
Compensated absences payable
2,391,510
604,974
2,996,484
Due in more than one year:
Long-term debt
10,742,787
153,583,062
164,325,849
Capital leases
-
17,000,597
17,000,597
Claims and judgments payable
35,821,500
-
35,821,500
Net other post-employment benefits liability
65,833,893
11,418,480
77,252,373
Compensated absences payable
13,130,171
1,369,970
14,500,141
Net pension liability
391,651,392
37,226,126
428,877,518
Total noncurrent liabilities
536,280,743
230,238,889
766,519,632
Total liabilities
585,283,296
245,921,926
831,205,222
Deferred Inflows of Resources:
Deferred pensions (See Note 16)
19,706,478
1,976,491
21,682,969
Deferred OPEB (See Note 17)
6,087,560
1,055,850
7,143,410
Total deferred inflows of resources
25,794,038
3,032,341
28,826,379
Net Position:
Net investment in capital assets
1,316,112,932
720,818,075
2,036,931,007
Restricted: Capital improvements
18,975,747
20,200,000
39,175,747
Unrestricted
(193,801,808)
107,638,278
(86,163,530)
Total net position
$1,141,286,871
$848,656,353
$1,989,943,224
The accompanying notes are an integral part of these financial statements.

21


img388b.png
22

CITY OF BAKERSFIELD
Statement of Activities
For the Fiscal Year Ended June 30, 2019

Program Revenues
Functions/Programs
Expenses
Charges for Services
Operating 
Grants and Contributions
Capital 
Grants and Contributions
Total
 
Primary Government
Governmental activities
General government
$31,112,425
$5,476,706
$621,202
$-
$6,097,908
Public safety - Police
106,340,979
3,719,138
2,172,597
-
5,891,735
Public safety - Fire
46,537,182
7,615,334
1,372,136
-
8,987,470
Public works
126,435,754
16,970,725
3,087,617
76,050,224
96,108,566
Recreation & parks
20,685,570
17,354,482
31,454
2,554,604
19,940,540
Development services
8,221,265
6,335,650
4,126,242
103,888
10,565,780
Interest on long-term debt
17,358
-
-
-
-
Total governmental activities 
339,350,533
57,472,035
11,411,248
78,708,716
147,591,999
Business-type activities
Wastewater treatment
43,491,976
33,916,086
6,752,334
9,735,725
50,404,145
Refuse collection
52,077,032
54,158,105
367,407
-
54,525,512
River and agricultural water
4,469,652
9,643,555
-
107,132
9,750,687
Domestic water
26,859,329
27,744,037
1,249,460
2,036,287
31,029,784
General aviation
480,368
318,401
37,791
98,486
454,678
Offstreet parking
290,799
160,090
-
-
160,090
Total business-type activities 
127,669,156
125,940,274
8,406,992
11,977,630
146,324,896
Total primary government 
$467,019,689
$183,412,309
$19,818,240
$90,686,346
$293,916,895

General Revenues

Taxes:

Property taxes

Sales and use tax

Other taxes

Intergovernmental, unrestricted

Unrestricted grants and contributions

Investment earnings

Miscellaneous

Gain on sale of property

Transfers

Total general revenues and transfers 

Change in net position

Net position - Beginning of Year, as restated

Net position - end of Year 

The accompanying notes are an integral part of these financial statements.

23





Net (Expenses) Revenues and 
Changes in Net Position
Governmental Activities
Business-type Activities
Total
$(25,014,517)
$-
$(25,014,517)
(100,449,244)
-
(100,449,244)
(37,549,712)
-
(37,549,712)
(30,327,188)
-
(30,327,188)
(745,030)
-
(745,030)
2,344,515
-
2,344,515
(17,358)
-
(17,358)
(191,758,534)
-
(191,758,534)
-
6,912,169
6,912,169
-
2,448,480
2,448,480
-
5,281,035
5,281,035
-
4,170,455
4,170,455
-
(25,690)
(25,690)
-
(130,709)
(130,709)
-
18,655,740
18,655,740
$(191,758,534)
$18,655,740
$(173,102,794)
$83,543,561
$-
$83,543,561
94,622,228
-
94,622,228
1,524,996
-
1,524,996
185,685
-
185,685
25,237,610
-
25,237,610
2,708,894
5,045,825
7,754,719
1,474,916
-
1,474,916
101,086
25,454
126,540
4,058,397
(4,058,397)
-
213,457,373
1,012,882
214,470,255
21,698,839
19,668,622
41,367,461
1,119,588,032
828,987,731
1,948,575,763
$1,141,286,871
$848,656,353
$1,989,943,224
24


img4227.png
25

Governmental Fund Financial Statements

26

CITY OF BAKERSFIELD
Balance Sheet
Governmental Funds
June 30, 2019


General
Fund
Transient Occupancy Taxes
Community Development Block Grant
Gas Tax
& Road Fund
Assets:
Cash and investments
$16,468,459
$23,881
$323,253
$-
Accounts receivable, net
794,606
968,364
14,738,224
22,031
Interest receivable
290,105
37,329
-
57,309
Due from other governmental agencies
29,187,262
-
709,345
40,286,090
Due from other funds
18,649,197
-
-
-
Notes/loans receivable
-
-
3,671,422
-
Prepaid items
12,755
-
-
-
Total assets
$65,402,384
$1,029,574
$19,442,244
$40,365,430
Liabilities, Deferred Inflows of Resources and Fund Balances:
Liabilities:
Accounts payable
$5,505,432
$26,745
$433,278
$8,791,445
Due to other funds
-
-
-
18,649,197
Advances from grantors and third parties
2,028,323
-
-
-
Total liabilities
7,533,755
26,745
433,278
27,440,642

Deferred Inflows of Resources:
Deferred revenue
3,235,695
-
18,392,057
22,031

Fund Balances:
Nonspendable
51,479
-
-
-
Restricted
-
-
616,909
12,902,757
Committed
27,488,388
13,470
-
-
Assigned
22,403,228
989,359
-
-
Unassigned
4,689,839
-
-
-
Total fund balances
54,632,934
1,002,829
616,909
12,902,757
Total liabilities, deferred inflows of 
resources, and fund balances
$65,402,384
$1,029,574
$19,442,244
$40,365,430
The accompanying notes are an integral part of these financial statements.

27



 



Capital
Outlay
Park
Improvement
Transportation Development
Other Governmental Funds
Total
Governmental
Funds
$56,139,156
$7,889,764
$52,965,027
$5,585,305
$139,394,845
644,607
-
-
6,313,033
23,480,865
62,082
37,887
261,156
25,996
771,864
28,914
-
-
234,350
70,445,961
-
-
-
-
18,649,197
-
-
-
22,719,433
26,390,855
942,965
-
-
-
955,720
$57,817,724
$7,927,651
$53,226,183
$34,878,117
$280,089,307
$2,211,547
$3,121,957
$1,674,270
$282,319
$22,046,993
-
-
-
-
18,649,197
-
-
-
22,925,863
24,954,186
2,211,547
3,121,957
1,674,270
23,208,182
65,650,376
46,606
-
-
6,213,854
27,910,243
942,965
-
-
-
994,444
-
-
-
5,456,081
18,975,747
26,647,827
4,805,694
51,551,913
-
110,507,292
27,968,779
-
-
-
51,361,366
-
-
-
-
4,689,839
55,559,571
4,805,694
51,551,913
5,456,081
186,528,688
$57,817,724
$7,927,651
$53,226,183
$34,878,117
$280,089,307
28

CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2019
Total Fund Balances - Total Governmental Funds
$186,528,688
Amounts reported for Governmental Activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet. Capital assets allocated from Internal Service Funds are included in the Internal Service Funds adjustment below.
Capital Assets
2,445,999,139
Ending accumulated depreciation
(1,157,139,265)
1,288,859,874
Land held for resale is not a current financial resource and is not reported in the Governmental Funds
1,198,744
Deferred outflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds
85,934,615
Deferred outflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds
7,203,338
Deferred inflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds
(19,151,269)
Deferred inflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds
(5,847,169)
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet.
(113,313)
Unavailable revenue and other resources not available to liquidate liabilities of the current period are not reconginized in the Governmental Funds. 
27,910,242
Internal Service Funds are used by management to chare the costs of certain activities, such as insurance and fleet management, to individual funds. The assets and liabilities of the Internal Service Funds are included in governmental activities in the Government-Wide Statement of Net Position.
43,335,524
Long-term liabilities are not due and payable in the current period and therefore they are not reported in the Governmental Funds Balance Sheet. Noncurrent liabilities allocated from Internal Service Funds are included in the Internal Service Funds adjustment above.
Notes/Contracts/Loans payable
(14,746,476)
Compensated Absences Payable
(14,890,796)
Unfunded post-employment benefits
(63,234,184)
Unfunded pension benefits
(381,700,947)
(474,572,403)
Net Position of Governmental Activities
$1,141,286,871

The accompanying notes are an integral part of these financial statements.

29

img49ba.png
30

CITY OF BAKER - CAFR2019 - Xbrl
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2019


General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Revenues:
Taxes
$189,012,448
$9,943,109
$-
$-
Licenses and permits
3,172,269
-
-
-
Intergovernmental
4,702,162
-
3,300,238
77,576,105
Charges for services
24,949,296
8,700,059
-
-
Fines, forfeitures and assessments
911,966
-
-
56,499
Interest income
1,413,557
117,291
1,073
370,085
Loan payments
-
-
326,479
-
Contributions and donations
123,155
1,200,000
-
-
Other income
1,448,179
-
8,751
199
Total revenues
225,733,032
19,960,459
3,636,541
78,002,888
Expenditures:
Current:
General government
12,750,089
9,891,488
-
-
Public safety - Police
95,677,601
-
-
-
Public safety - Fire
39,033,631
-
-
-
Public works
22,867,605
-
-
3,266,451
Recreation and parks
20,336,011
-
-
-
Development services
7,701,370
-
2,407,213
-
Non-departmental
9,220,222
3,136,900
-
-
Capital outlay
-
-
633,969
77,021,522
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total expenditures
207,586,529
13,028,388
3,041,182
80,287,973
Excess (deficiency) of revenues
over (under) expenditures
18,146,503
6,932,071
595,359
(2,285,085)
Other financing sources (uses):
Transfers in
1,200,000
-
-
-
Transfers out
(3,734,670)
(7,791,897)
(507,545)
-
Total other financing sources (uses)
(2,534,670)
(7,791,897)
(507,545)
-
Net change in fund balances
15,611,833
(859,826)
87,814
(2,285,085)
Fund balances - beginning, as restated
39,021,101
1,862,655
529,095
15,187,842
Fund balances - ending
$54,632,934
$1,002,829
$616,909
$12,902,757
The accompanying notes are an integral part of these financial statements.

31



 



Capital
Outlay
Park
Improvement
Transportation Development
Other Governmental Funds
Total
Governmental
Funds
$5,673,495
$-
$-
$-
$204,629,052
-
-
-
311,666
3,483,935
578,024
-
4,536
2,053,902
88,214,967
234,927
-
50,736
1,500,963
35,435,981
80,519
2,204,604
15,219,759
1,585,189
20,058,536
884,155
148,038
1,294,736
144,093
4,373,028
-
-
-
45,983
372,462
-
-
-
-
1,323,155
10,311
23,305
-
480,344
1,971,089
7,461,431
2,375,947
16,569,767
6,122,140
359,862,205
-
-
208,074
-
22,849,651
-
-
-
1,351,800
97,029,401
-
-
-
1,583,127
40,616,758
-
-
780,623
395,696
27,310,375
-
-
-
22,875
20,358,886
-
-
-
307,253
10,415,836
323,877
-
-
-
12,680,999
18,908,605
2,867,633
14,839,772
818,146
115,089,647
-
-
-
635,085
635,085
-
-
-
51,545
51,545
19,232,482
2,867,633
15,828,469
5,165,527
347,038,183
(11,771,051)
(491,686)
741,298
956,613
12,824,022
11,238,500
-
-
686,630
13,125,130
-
-
-
(1,230,000)
(13,264,112)
11,238,500
-
-
(543,370)
(138,982)
(532,551)
(491,686)
741,298
413,243
12,685,040
56,092,122
5,297,380
50,810,615
5,042,838
173,843,648
$55,559,571
$4,805,694
$51,551,913
$5,456,081
$186,528,688
32

CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-Wide Statement of Activities
For the Fiscal Year Ended June 30, 2019



Net Change in Fund Balances - Total Governmental Funds
$12,685,040
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Capital Outlay eliminated
$24,857,744
Depreciaition expense is deducted from fund balance (net of Internal Service Fund depreciation of $7,219,150 which has already been allocated to serviced funds).
(59,834,151)
Contributions of infrastructure and improvements by developers are capitalized in the Statement of Activities, but are not recorded in the Governmental Fund Financial Statements because no cash changed hands.
45,841,990
10,865,583
Certain expenses are reported in the Government-Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, these expenses are not reported as expenditures in Governmental Funds.
Net  compensated absences expense
(367,675)
Interest expense on long-term debt
34,187
Net pension expense
(9,898,061)
Net other postemployment benefit expense
3,689,049
(6,542,500)
Bond and loan proceeds provide current financial resources to Govermental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond pricipal is an expenditure in Governmental Funds, but the repayment reduces long-term liabilities in the Government-Wide Statement of Net Position.
(442,356)
Unearned revenue and other resources not available to liquidate liabilities of the current period are not reconginized in the Governmental Funds. Revenue in the Statement of Activities is not limited by availability, so cerntain revenues need to be reduced by the amounts that were unavailable at the end of the year. This adjustment records a net decrease in revenues - unavailable revenues at the beginning of the year exceed ending unavailable revenues by this amount.
(844,353)
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the Internal Service Funds i reported with Governmental Activites.
6,246,746
Loss on disposal of governmental capital assets is not recorded in fund activity but is included in Governmental Activities
(269,321)
Change in Net Position of Governmental Activities
$21,698,839
The accompanying notes are an integral part of these financial statements.

33

Proprietary Fund Financial Statements
These funds account for operations (a)  that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of net income is appropriate for accountability purposes.
Wastewater Treatment Fund is used to account for the provision of sewer service to the residents of the City and some residents of Kern County. This fund also accounts for the activities related to the debt issuance which provided for the Wastewater Treatment Facilities.
Refuse Collection Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to provide such services are accounted for in this fund.
River & Agricultural Water Fund is used to account for the provision of water service restricted primarily for agricultural purposes to users within the City and some users within Kern County (some Kern River water is exchanged for State Aqueduct water for domestic water purposes). All activities necessary to provide such services are accounted for in this fund.
Domestic Water Fund is used to account for the provision of water service to some residents of the City and Kern County. All activities necessary to provide such service are accounted for in this fund.
General Aviation Fund is used to account for the acquisition and operation of the Bakersfield Airpark. The majority of acquisition and improvement financing for the airport facility was provided by a grant from the Federal Aviation Administration.
Offstreet Parking Fund is used to account for the operations of the parking garage at 18th and Eye Streets and various offstreet surface parking lots within the City. The parking garage was financed by the former Redevelopment Agency and the related debt was retired in August 1994. Subsequently, the title was transferred to the City.
Internal Service Funds are used to provide goods and services by one department or agency to other departments or agencies of the City on a cost reimbursement basis.
34

CITY OF BAKERSFIELD
Statement of Net Position
Proprietary Funds
June 30, 2019

Wastewater 
Treatment
Refuse 
Collection
River & Agricultural
Water
Current assets:
Cash and investments
$84,311,849
$20,451,492
$9,520,313
Accounts receivable, net
1,316,561
1,260,841
5,939,667
Interest receivable
404,601
98,209
45,717
Notes/loans receivable
-
-
-
Due from other governmental agencies
93,744
1,632,883
350
Prepayments and inventories
-
-
-
Total current assets
86,126,755
23,443,425
15,506,047
Noncurrent assets:
Capital assets:
Land
10,238,095
2,785,456
2,175,944
Depreciable buildings, property,
equipment and infrastructure, net
600,378,023
985,806
6,984,244
Construction in progress
8,118,414
142,880
820,610
Non-amortizable intangible assets
-
-
8,032,678
Other long-term receivable
320,440
-
31,777
Total noncurrent assets
619,054,972
3,914,142
18,045,253
Total assets
705,181,727
27,357,567
33,551,300
Deferred outflows of resources:
Deferred pensions
2,002,157
3,863,799
550,546
Deferred other post-employment benefits
377,498
754,885
139,317
Debt issuance
9,204,816
-
-
Total deferred outflows of resources
11,584,471
4,618,684
689,863
Current liabilities:
Accounts payable and accrued liabilities
3,687,633
2,536,213
184,349
Claims payable
-
-
-
Workers' compensation claims
-
-
-
Compensated absences payable
159,161
261,951
53,348
Long-term debt - due within one year
8,050,764
-
-
Capital leases payable - due within one year
-
-
-
Advances from grantors and third parties
320,440
128,931
-
Total current liabilities
12,217,998
2,927,095
237,697
Noncurrent liabilities:
Long-term debt - due in more than one year
153,583,062
-
-
Capital leases payable - due in more than one year
-
-
-
Kern River Levee District/Buena Vista
-
-
314,215
Customers' deposits
2,422,331
462,140
-
Workers' compensation claims
-
-
-
Compensated absences payable
457,184
679,119
114,374
Net pension liability
11,314,125
20,189,359
3,136,070
Net other post-employment benefits liability
3,313,850
6,626,727
1,222,992
Total noncurrent liabilities
171,090,552
27,957,345
4,787,651
Total liabilities
183,308,550
30,884,440
5,025,348
Deferred inflows of resources:
Deferred pensions
539,401
1,102,401
166,827
Deferred other post-employment benefits
306,427
612,763
113,088
Total deferred inflows of resources
845,828
1,715,164
279,915
Net position:
Net investment in capital assets
466,305,521
3,914,142
18,013,477
Restricted for:
Capital improvements
20,200,000
-
-
Unrestricted
46,106,299
(4,537,495)
10,922,423
Total net position
$532,611,820
$(623,353)
$28,935,900
Adjustments to reflect the consolidation of internal service fund 
activities related to proprietary funds
Net position of business-type activities
The accompanying notes are an integral part of these financial statements.

35



 



Domestic
Water
General
Aviation
Offstreet
Parking
Totals
Governmental Activities
Internal Service Funds
$55,305,229
$907,620
$104,854
$170,601,357
$65,775,114
3,031,198
14,219
3,300
11,565,786
25,251
265,578
4,358
502
818,965
314,231
-
-
-
-
410,846
-
26,320
-
1,753,297
-
-
-
-
-
1,110,076
58,602,005
952,517
108,656
184,739,405
67,635,518
556,336
7,464,254
410,000
23,630,085
-
167,262,134
3,032,404
548,093
779,190,704
41,999,533
47,341,942
196,841
-
56,620,687
-
23,444,228
-
-
31,476,906
-
-
-
24,461
376,678
-
238,604,640
10,693,499
982,554
891,295,060
41,999,533
297,206,645
11,646,016
1,091,210
1,076,034,465
109,635,051
550,402
38,183
-
7,005,087
1,861,841
29,038
-
-
1,300,738
296,147
-
-
-
9,204,816
-
579,440
38,183
-
17,510,641
2,157,988
3,820,769
39,832
12,158
10,280,954
1,888,063
-
-
-
-
5,772,301
-
-
-
-
6,933,500
130,514
-
-
604,974
202,176
-
-
-
8,050,764
-
670,701
-
-
670,701
-
-
-
-
449,371
-
4,621,984
39,832
12,158
20,056,764
14,796,040
-
-
-
153,583,062
-
17,000,597
-
-
17,000,597
-
-
-
-
314,215
-
2,068,241
-
-
4,952,712
-
-
-
-
-
35,821,500
104,705
14,588
-
1,369,970
428,709
2,450,318
136,254
-
37,226,126
9,950,445
254,911
-
-
11,418,480
2,599,709
21,878,772
150,842
-
225,865,162
48,800,363
26,500,756
190,674
12,158
245,921,926
63,596,403
159,626
8,236
-
1,976,491
555,209
23,571
-
-
1,055,849
240,391
183,197
8,236
-
3,032,340
795,600
220,933,343
10,693,499
958,093
720,818,075
41,999,533
-
-
-
20,200,000
-
50,168,789
791,790
120,959
103,572,765
5,401,503
$271,102,132
$11,485,289
$1,079,052
844,590,840
$47,401,036
4,065,513
$848,656,353
36

CITY OF BAKERSFIELD
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2019

Wastewater 
Treatment
Refuse 
Collection
River & Agricultural
Water
Operating revenues:
Intergovernmental
$-
$367,407
$-
Charges for services
33,430,249
48,337,526
7,869,700
Cost recoveries
25,929
5,534,214
567,010
Rental income
386,862
-
211,731
Other sales or services
299
66,888
810,331
Miscellaneous
72,747
219,476
-
Total operating revenues
33,916,086
54,525,511
9,458,772
Operating expenses:
General and administrative
17,083,802
53,262,283
4,067,904
Transmission and distribution
(21,216)
663,236
110,044
Workers' compensation payments
-
-
-
Claims paid
-
-
-
Depreciation and amortization
20,182,170
63,946
387,591
Compensated absences
-
10,934
11,994
Total operating expenses
37,244,756
54,000,399
4,577,533
Operating income (loss)
(3,328,670)
525,112
4,881,239
Nonoperating revenues (expenses):
Interest income
2,375,068
680,043
281,121
Connection fees
6,752,334
-
-
Interest expense
(6,494,654)
-
-
Gain on sale of capital assets
-
15,754
-
Total nonoperating revenues (expenses)
2,632,748
695,797
281,121
Income (loss) before transfers
and capital contributions
(695,922)
1,220,909
5,162,360
Capital contributions
9,735,725
-
107,132
Transfers in
-
-
-
Transfers out
(808,447)
(2,890,840)
(404,110)
Change in net position
8,231,356
(1,669,931)
4,865,382
Total Net Position -
 Beginning of Year - as restated
524,380,464
1,046,578
24,070,518
Total Net Position-End of Year
$532,611,820
$(623,353)
$28,935,900
Adjustment to reflect the consolidation of internal
service activity related to proprietary funds
Change in net position of business-type activities
The accompanying notes are an integral part of these financial statements.

37






 
Domestic
Water
General
Aviation
Offstreet
Parking
Totals
Governmental
Activities
Internal Service 
Funds
$-
$37,791
$-
$405,198
$281,324
25,371,385
316,114
160,090
115,485,064
39,881,612
192,925
1,687
-
6,321,765
1,475,906
-
-
-
598,593
-
2,338,078
-
-
3,215,596
-
26,432
600
-
319,255
378,315
27,928,820
356,192
160,090
126,345,471
42,017,157
20,727,972
235,521
202,204
95,579,686
30,349,170
721,357
308
-
1,473,729
-
-
-
-
-
2,633,609
-
-
-
-
36,412
4,700,537
245,150
90,628
25,670,022
7,219,150
22,719
-
-
45,647
52,678
26,172,585
480,979
292,832
122,769,084
40,291,019
1,756,235
(124,787)
(132,742)
3,576,387
1,726,138
1,681,757
23,763
4,075
5,045,827
1,664,134
1,249,460
-
-
8,001,794
-
(703,638)
-
-
(7,198,292)
-
9,699
-
-
25,453
93,414
2,237,278
23,763
4,075
5,874,782
1,757,548
3,993,513
(101,024)
(128,667)
9,451,169
3,483,686
2,036,287
98,486
-
11,977,630
863,900
-
-
45,000
45,000
4,346,322
-
-
-
(4,103,397)
(148,943)
6,029,800
(2,538)
(83,667)
17,370,402
8,544,965
265,072,332
11,487,827
1,162,719
38,856,071
$271,102,132
$11,485,289
$1,079,052
$47,401,036
2,298,220
$19,668,622
38

CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2019


Wastewater Treatment
Refuse Collection
Cash flows from operating activities:
Cash received from:
Customers, including cash deposits
$33,590,614
$54,099,093
Prior year reimbursements and cost recoveries
25,929
-
Cash paid to:
Suppliers
(9,365,987)
(38,854,338)
Employees
(6,590,958)
(11,959,206)
Cash deposits returned to customers
-
-
Net cash provided (used) by operating activities
17,659,598
3,285,549
Cash flows from noncapital financing activities:
Cash transferred from other funds
-
-
Cash transferred to other funds
(808,447)
(2,890,840)
County/developer project share
-
-
Connection fees
6,752,334
-
Net cash provided (used) by noncapital financing activities
5,943,887
(2,890,840)
Cash flows from capital and related financing activities:
Principal payments:
Notes/Loans/Bonds
(6,277,126)
-
Capital lease payments
-
-
Capital contributions
-
-
Interest paid
(7,287,304)
-
Purchase of capital assets
-
-
Proceeds from sale of capital assets
-
15,754
Construction in progress
(9,010,680)
(159,527)
Net cash provided (used) by capital and related financing activities
(22,575,110)
(143,773)
Cash flows from investing activities:
Interest received
1,855,002
552,961
Net increase (decrease) in the fair value of investments
486,778
117,432
Net cash provided by investing activities
2,341,780
670,393
Net increase (decrease) in cash and investments
3,370,155
921,329
Cash and investments - Beginning of year
80,941,694
19,530,163
Cash and investments - End of year
$84,311,849
$20,451,492
The accompanying notes are an integral part of these financial statements.

39



 



River & Agriculture Water
Domestic Water 
General Aviation 
Offstreet Parking 
Totals
Governmental Activities Internal Service Funds
$3,991,934
$28,091,057
$307,994
$157,360
$120,238,052
$41,267,832
-
-
1,687
-
27,616
1,475,906
(2,466,428)
(24,644,512)
(227,813)
(199,884)
(75,758,962)
(23,156,384)
(1,617,308)
(1,455,797)
-
-
(21,623,269)
(7,966,231)
-
(156,613)
-
-
(156,613)
-
(91,802)
1,834,135
81,868
(42,524)
22,726,824
11,621,123
-
-
-
45,000
45,000
4,346,322
(404,110)
-
-
-
(4,103,397)
(148,943)
107,132
-
-
-
107,132
-
-
803,280
-
-
7,555,614
-
(296,978)
803,280
-
45,000
3,604,349
4,197,379
-
-
-
-
(6,277,126)
-
-
(643,995)
-
-
(643,995)
-
-
-
98,486
-
98,486
-
-
(703,638)
-
-
(7,990,942)
-
-
-
(131,675)
-
(131,675)
(10,906,098)
-
9,699
-
11,893
37,346
203,926
(820,610)
(16,366,539)
-
-
(26,357,356)
-
(820,610)
(17,704,473)
(33,189)
11,893
(41,265,262)
(10,702,172)
219,515
1,312,326
16,265
3,383
3,959,452
1,272,647
63,137
416,479
5,029
515
1,089,370
352,458
282,652
1,728,805
21,294
3,898
5,048,822
1,625,105
(926,738)
(13,338,253)
69,973
18,267
(9,885,267)
6,741,435
10,447,051
68,643,482
837,647
86,587
180,486,624
59,033,679
$9,520,313
$55,305,229
$907,620
$104,854
$170,601,357
$65,775,114
40

CITY OF BAKERSFIELD
Statement of Cash Flows (concluded)
Proprietary Funds
For the Fiscal Year Ended June 30, 2019

Wastewater Treatment
Refuse Collection
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Operating income (loss)
$(3,328,670)
$525,112
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense
20,182,170
63,946
(Increase) decrease in accounts receivable
(240,043)
(432,938)
(Increase) decrease in inventories
-
-
(Increase) decrease in prepaid items
-
-
Increase (decrease) in accounts payable
(550,988)
1,698,215
Increase in workers' compensation claims
-
-
Increase (decrease) in unearned revenue
-
(1,764)
Increase (decrease) in customers' deposits
(59,500)
8,284
Increase (decrease) in compensated absences
23,597
(43,449)
Increase (decrease) in net pension liability
(589,335)
(995,339)
Increase (decrease) in deferred outflows/inflows of resources for pensions
926,362
1,541,259
Increase (decrease) in net other post-employment benefits liability
1,257,238
1,073,874
Increase (decrease) in deferred outflows/inflows of resources for OPEB
38,767
(151,651)
Net cash provided (used) by operating activities
$17,659,598
$3,285,549
Noncash investing capital and financing activities:
Contribution of equipment from other departments
$-
$-
Contributions of infrastructure and improvements
by developers
$9,735,725
$-

The accompanying notes are an integral part of these financial statements.

41



 



River & Agriculture Water
Domestic Water 
General Aviation 
Offstreet Parking 
Totals
Governmental Activities Internal Service Funds
$4,881,239
$1,756,235
$(124,787)
$(132,742)
$3,576,387
$1,726,138
387,591
4,700,537
245,150
90,628
25,670,022
7,219,150
(5,412,306)
(23,623)
(46,511)
(2,730)
(6,158,151)
726,581
-
-
-
-
-
(5,628)
-
-
-
-
-
(15,156)
114,482
(4,737,080)
1,136
2,320
(3,471,915)
810,967
-
-
-
-
-
962,650
-
-
-
-
(1,764)
-
(54,532)
29,247
-
-
(76,501)
-
7,139
22,719
14,204
-
24,210
52,678
(129,121)
(123,842)
(4,975)
-
(1,842,612)
(425,794)
200,227
203,182
(2,349)
-
2,868,681
656,865
(10,975)
(2,165)
-
-
2,317,972
(22,472)
(75,546)
8,925
-
-
(179,505)
(64,856)
$(91,802)
$1,834,135
$81,868
$(42,524)
$22,726,824
$11,621,123
$-
$2,036,287
$-
$-
$2,036,287
$863,900
$-
$-
$-
$-
$9,735,725
$-
42

img5df9.png
43

Fiduciary Fund Financial Statements
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individual private organizations, other governmental units and/or other funds. Detailed combining statements for Fiduciary Funds are located in the Supplementary Information section. Below are descriptions of the generic fund types within this category and specific funds within each fund type.
 
Private Purpose Trust Funds

Redevelopment Successor Agency - The Bakersfield Redevelopment Agency ceased activities in February 2012. All non-housing related assets, liabilities and activities have been transferred to the City and are accounted for in a trust fund.

Planning Habitat Trust Fund - This fund is used to account for monies collected from developers to be used to purchase suitable land to provide habitat for endangered species. After the land is purchased, it is transferred to the State Fish and Game Department for maintenance.

Pension and Other Employee Benefit Trust Funds

Fire Relief and Pension Trust Fund - This fund is used to account for the accumulation of resources to be used for retirement annuity payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 2, 1972.

Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund - This fund is used to account for the City's post-retirement medical benefit plan. The City provides medical insurance coverage through contributions to eligible retirees' insurance premiums.

Agency Funds

Special Deposits Fund - This fund is used to account for the collection by the City as agent for organizations operated under the auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits and bid deposits. This fund is also used for the collection of police seized property, local Law Enforcement Block Grants, and other revenues held in trust pending disposition of contingencies.

Improvement Districts Fund - This fund is used to account for the collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the Improvement Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the benefited properties. A trustee administers the periodic payment to the bondholders. In addition, Community Service Districts created for the West Ming and Old River Ranch developments are accounted for in this section. These funds are collected to be used to pay for public safety costs in the applicable communities. 
44

CITY OF BAKERSFIELD
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2019


Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds
Agency
Funds
Assets:
Current assets:
Cash and investments
$17,851,256
$73,132,751
$33,617,012
Accounts receivable
-
-
106,908
Interest receivable
83,934
4,276
31,745
Due from other governmental agencies
-
-
173,398
Total current assets
17,935,190
73,137,027
33,929,063
Noncurrent assets:
Land held for resale
60,895
-
-
Total noncurrent assets
60,895
-
-
Total assets
17,996,085
73,137,027
33,929,063
Liabilities:
Payables:
Advances from grantors and third parties
3,504,005
-
-
Deposits
-
-
29,571,857
Accrued bond interest
-
-
632,206
Bonds
2,390,000
-
3,725,000
Notes
15,181,840
-
-
Total liabilities
21,075,845
-
33,929,063
Net Position:
Restricted for:
Individuals, organizations and other governments
(3,079,760)
-
-
Pensions & other post-employment benefits
-
73,137,027
-
$(3,079,760)
$73,137,027
$-
The accompanying notes are an integral part of these financial statements.

45

CITY OF BAKERSFIELD
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2019


Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds
Additions
Contributions to pooled investments
$-
$7,940,057
Developer fees
892,258
-
Successor agency property tax deposits
3,496,580
-
Charges for services/capital lease revenue
3,136,900
-
Other income
(346,994)
-
Interest income
291,291
4,904,196
Total additions
7,470,035
12,844,253
Deductions:
Benefits
-
6,704,861
Purchase of uninhabited land
1,060,793
-
Obligation retirement
3,796,712
-
Administrative expenses
-
202,706
Total deductions
4,857,505
6,907,567
Change in net position
2,612,530
5,936,686
Net position - beginning of year 
(5,692,290)
67,200,341
Net position - end of year
$(3,079,760)
$73,137,027

The accompanying notes are an integral part of these financial statements.

46

img17c7.png
47

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The accompanying financial statements of the City of Bakersfield (the “City”) have been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB).  The following summary of the City’s significant accounting policies is presented to assist the reader in interpreting the basic financial statements and other data in this report. These policies should be viewed as an integral part of the accompanying basic financial statements.
A.Description of Reporting Entity 
The City of Bakersfield, California, is a California Charter City, incorporated on January 11, 1898, and serves as the county seat of the County of Kern, California (the “County”).  The City is a full-service city and operates under a Council - Manager form of government, providing the following services as authorized by its Charter:  General government; public safety; public works; and development and conservation.
As required by GAAP, these basic financial statements present the government and its component units, entities for which the government is considered to be financially accountable.  Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government.  
B.Basis of Presentation 
Government-Wide Financial Statements 
The Government-Wide financial statements (the statement of net position and the statement of activities) report information of all of the non-fiduciary activities of the primary government and its component units.  For the most part, eliminations have been made to minimize the double counting on internal activities.  Internal activities for services provided and used that are not  eliminated  include  water,  solid waste  and sewer  services  provided  to various other functions of the government.  These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities.  Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function.  Some functions include expenses that are, in essence, indirect expenses of other functions resulting from charges among funds or programs for centralized services.  Program revenues include: 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program.  Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.
Net position is restricted when constraints placed on it are either externally imposed or are imposed by constitutional provisions or enabling legislation.  Internally imposed designations of resources are not presented as restricted net position.  When both restricted and unrestricted resources are available for use, generally it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

48

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
B.Basis of Presentation (continued) 

Governmental Fund Financial Statements  
The governmental fund financial statements provide information about the City’s funds, including fiduciary funds and the blended component unit.  Separate statements for each fund category - governmental, proprietary and fiduciary - are presented.  The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column.  All remaining governmental and enterprise funds are separately aggregated and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund.  Exchange transactions are those in which each party receives and gives up essentially equal values.  Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.  Operating expenses for enterprise funds include cost of sales and services, administrative expenses, and depreciation of capital assets.  As used in this section, the term depreciation can include amortization of intangible assets.  All expenses not meeting this definition are reported as nonoperating expenses.
The City reports the following major governmental funds:
General Fund - The General Fund is the principal operating fund of the City.  It is used to account for all financial resources except those required to be accounted for in another fund.  For the City, the General Fund includes basic governmental activities, such as general government, public safety, public works, and community services.
Transient Occupancy Taxes Fund - The Transient Occupancy Taxes Fund is used to account for transient occupancy tax revenues (hotel tax) and expenditures funded by this revenue source.  The Rabobank Arena and Convention Center and the Bakersfield Ice Sports Center operating revenues and expenditures are recorded in this fund.  This fund is also used to account for  the operations of the Visit Bakersfield division of the City.
Community Development Block Grant Fund – The Community Development Block Grant Fund is used to account for resources provided by the Federal Housing and Community Development Act of 1974 for the elimination of slums and blight, housing conservation and improvements of community services.
Gas Tax & Road Fund - The Gas Tax & Road Fund is used to account for the City’s share, based upon population, of state gasoline taxes.  State law requires these gasoline taxes to be used to maintain streets or for major street construction.  This fund also accounts for other State and Federal grant revenues related to street maintenance or construction, including the Federal earmark Thomas Roads funds.
Capital Outlay Fund - The Capital Outlay Fund is used to account for the cost of capital projects financed by local revenues and various grant/loan proceeds for capital expenditures. This fund also accounts for the special Utility Franchise/Surcharge Fund created by the City Council to account for the specified local road project costs funded by the selected electricity and gas franchise surcharge fees.  In addition, funds contributed by the County to be used to cover a portion of the costs of the local match needed for the Thomas Roads projects are accounted for in this fund.
Park Improvement Fund - The Park Improvement Fund is used to account for funds collected for residential park development (Ordinance No. 3646).  Fees are collected based on the development’s share of the cost to develop, improve, construct, or enhance a neighborhood park (Ordinance No. 3327).  
Transportation Development Fund - The Transportation Development Fund is used to account for funds collected from fees paid to mitigate the traffic impacts to the regional circulation system caused by a development project.  The fees are paid when a building permit for the development project is obtained, and are based upon the amount of traffic the development will generate.  The fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and revised to reflect updated costs and growth projections.  
49

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
B.Basis of Presentation (continued) 
The City reports the following major proprietary (enterprise) funds:
Wastewater Treatment Fund - The Wastewater Treatment Fund is used to account for the provision of sewer service to the residents of the City and some residents of the County.  This fund also accounts for the activities related to the debt issuance, which provided for the Wastewater Treatment Facilities.  
Refuse Collection Fund - The Refuse Collection Fund is used to account for the collection and disposal of refuse within the City.  All activities necessary to provide such services are accounted for in this fund.
River & Agricultural Water Fund - The River & Agricultural Water Fund is used to account for the provision of water service restricted primarily for agricultural purposes to users within the City and some users within the County (some Kern River water is exchanged for State Aqueduct water for domestic water purposes).  All activities necessary to provide such services are accounted for in this fund.
Domestic Water Fund - The Domestic Water Fund is used to account for the provision of water service to residents of the City and County connected to the City's system.  All activities necessary to provide such services are accounted for in this fund.
General Aviation Fund - The General Aviation Fund is used to account for the acquisition and operation of the Bakersfield Municipal Airpark located on Union Avenue.  The majority of acquisition and improvement financing for the airport facility was provided by a grant from the Federal Aviation Administration.
Offstreet Parking Fund - The Offstreet Parking Fund is used to account for the operations of the parking garage at 18th and Eye Streets and various offstreet surface parking lots within the City. The parking garage was financed by the former Redevelopment Agency and the related debt was retired in August 1994, and subsequently, the title was transferred to the City.
The City reports the following additional fund types:  
Internal Service Funds - The Internal Service Funds are used to account for the cost of goods or services provided by one department or agency to other departments or agencies of the governmental unit on a reimbursement basis.  The City accounts for its self-insurance and equipment management activities as internal service funds. 
Private Purpose Trust Fund  - The Planning Habitat Trust Fund is used to account for monies collected from developers to be used to purchase suitable land to provide habitat for endangered species.  After the land is purchased, it is transferred to the State Fish and Game Department for maintenance. The City also records the assets, liabilities, and activities of the Redevelopment Successor Agency in a separate trust fund.
Pension and Other Employee Benefit Trust Funds - The Fire Relief and Pension Trust Fund is used to account for the  annuity payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 26, 1972.  The Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund is used to account for the City’s postretirement medical benefit plan in which the City provides medical insurance coverage through contributions to eligible retirees’ insurance premiums.
Agency Funds - The Agency Funds account for assets held by the City as an agent for various local governments or other entities.  The Special Deposits Fund is used to account for the collection by the City as agent for organizations operated under the auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits and bid deposits.  This fund is also used for the collection of police seized property, local Law Enforcement Block Grants and other revenues held in trust pending disposition of contingencies. The Improvement Districts Fund is used to account for the collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the Improvement Bond Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the
50

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
B.Basis of Presentation (continued) 
benefited properties.  A trustee provides the periodic payment to the bondholders. This fund also accounts for the special assessments and taxes collected within the boundaries of Community Service Districts within the City.
C.Basis of Accounting 
The government-wide, proprietary, private purpose trust, and pension and other employee benefit trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.  Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.  Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donations.  On an accrual basis of accounting, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.  Revenues from sales tax are recognized when the underlying transactions take place.  Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. The agency funds utilize the accrual basis of accounting to report assets and liabilities but technically have no measurement focus.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting.  Under this method, revenues are recognized when measurable and available.  Property and sales taxes, interest, certain State and Federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available.  Expenditures are generally recorded when a liability is incurred, as under the accrual basis of accounting.  However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due.  General capital assets acquisitions are reported as expenditures in governmental funds.  Proceeds of general long-term debt and capital leases are reported as other financing sources.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.  Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds' principal ongoing operations.  Revenues and expenses not meeting this definition are reported as nonoperating.
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items 
Cash and Investments
Cash balances of each of the City's funds, except for certain Trust and Agency Funds, are pooled and invested by the City.  Income earned from pooled investments is allocated to each of the funds based on average pooled cash balances during the year.  Deficit cash balances are classified as due to other funds and funded by the General Fund or related operating fund.
The City applies GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools.  This statement generally requires that investments be reported at their fair value and that all changes in fair value be reflected as income of the period in which they occur.
Statutes authorize the City to invest in obligations of the United States Treasury, agencies and instrumentalities, commercial paper, bankers' acceptances, repurchase agreements, money market funds, and the State Treasurer's investment pool.  The City's Pension Trust Fund is also authorized to invest in corporate bonds rated A or better by a national rating system generally recognized and used by banks and investment brokers in the United States.
Investments are comprised of obligations of the United States Treasury, agencies and instrumentalities, cash, time certificates of deposit, mutual funds, bankers' acceptances, money market accounts, deposits in the State of California Local Agency Investment Fund (LAIF), and California Asset Management Program (CAMP). Investments are stated at fair value. 
51

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) 

Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements or transfers.  Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans).  Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statement as “internal balances.”  Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses.  Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement.  All other interfund transactions are treated as transfers.  Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
Receivables
All trade and property tax receivables are shown net of an allowance for uncollectible accounts.  Trade accounts receivable in excess of 180 days comprise the trade accounts receivable allowance for uncollectible accounts.
Inventory and Prepaid Items
Inventory is valued at average cost applied on a first-in, first-out (FIFO) basis. The reserve for prepaid expenses relates to certain payments to vendors for costs applicable to future accounting periods. The cost of both inventories and prepaid items are recorded as expenditures/expenses when consumed rather than when purchased.
Capital Assets
Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the government-wide financial statements to the extent the City’s capitalization thresholds are met.
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible water rights are reported in the applicable governmental or business-type activities columns in the government-wide financial statements.  Capital assets are defined by the government as assets with an estimated useful life in excess of one year and an initial individual cost of more than $50,000 for infrastructure and $5,000 for all other capital assets.  Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.  Donated capital assets are recorded at acquisition value at the date of donation in the majority of instances. When assets are donated in relation to a service concession arrangement, they are reported at acquisition cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.  Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized.  Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
52

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) 

Major outlays for capital assets and improvements are capitalized as projects are constructed.  Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:




Infrastructure
10 to 70 years

Buildings, structures and improvements
5 to 40 years

Transmission and distribution equipment
5 to 50 years

Rolling equipment
2 to 30 years

Office equipment
3 to 10 years
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position.  Debt principal payments of both governmental and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position.  Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.
In the fund financial statements, however, debt principal payments of governmental funds are recognized as expenditures when paid.  Governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period.  The face amount of debt issued is reported as other financing sources.  Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.  Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Deferred Outflows and Inflows of Resources
As required by GASB Statements No. 63 and No. 65, the City recognized applicable deferred outflows and inflows of resources in the government-wide, governmental, and proprietary fund type financial statements. 
The Statements of Net Position and Balance Sheets will sometimes report a separate section for deferred outflows of resources, defined as a consumption of net position or fund balance by the City that is applicable to a future funding period, or deferred inflows of resources, defined as an acquisition of net position or fund balance by the City that is applicable to a future funding period. The City has items that qualify for reporting in these categories and are detailed in a separate note disclosure. 
53

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) 

Net Position/Fund Balance
The government-wide and proprietary fund financial statements utilize a net position presentation.  Net position is categorized as net investment in capital assets, restricted and unrestricted.
Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position.  Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors, laws, or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position - This category represents net position of the City, not restricted for any project or other purpose.
As of June 30, 2019, net position is as follows:


Governmental
Activities
Business-Type
Activities
Total


Net investment in capital assets
$1,316,112,932
$720,818,075
$2,036,931,007

Restricted
18,975,747
20,200,000
39,175,747

Unrestricted
(193,801,808)
107,638,278
(86,163,530)

Total net position
$1,141,286,871
$848,656,353
$1,989,943,224

Fund balances of the governmental funds are report using a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported. Fund balances for governmental funds are segregated as follows:
Nonspendable Fund Balance – includes net resources that cannot be spent because of their form or because of legal or contractual limitations, and therefore must remain intact. 
Restricted Fund Balance – includes net resources that have externally enforceable limitations on their use.  These limitations can be established by creditors, grantors, or by laws and regulations.
Committed Fund Balance – includes amounts with self-imposed limitations and are set in place prior to the end of the fiscal year.  Commitments are set forth by the formal action of the City’s highest level of decision-making authority, the City Council, and the limitations require that same level of authority to be removed.
Assigned Fund Balance – includes amounts for which the intended use results in limitations but do not meet the requirements for either the “Restricted” or “Committed” classifications.  Intended use can be established by the City Council, a governing committee or board, or by a City official designated as having that authority.
Unassigned Fund Balance – is the residual balance of the General Fund not included in the other classifications.  
The City Council establishes, modifies or rescinds fund balance commitments though approval of contracts for services and
54

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) 
supplies that require City Council authorization through resolution.  Fund balance assignments are made by agreements entered into by department heads, and their designees, for specific purposes. The City Council also establishes fund balance assignments through the adoption of the budget and subsequent budget amendments. Assignments are generally temporary and as such, additional action is not usually needed for assignments to be removed. The City Council approved, through resolution, a Fund Balance policy that established these rules for fund balance commitments and assignments in the General Fund. It was not deemed necessary to include a policy to achieve and maintain a specific level of unrestricted fund balance in the General Fund.

Fund Balance Flow Assumptions
The City will sometimes fund outlays for a specific purpose from restricted and unrestricted resources (committed, assigned, and unassigned fund balance). A flow assumption must be made about the order of how these resources will be applied to properly calculate the amounts reported as restricted, committed, assigned, and unassigned. It is the City’s policy to consider restricted fund balance to be used completely before any components of unrestricted fund balance.  When the components of unrestricted fund balance are used for the same purpose, the amount classified as committed is used first, followed by assigned, and unassigned is applied last. 

Property Taxes
In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate is limited to 1% of market value.  This property tax rate limitation may only be increased through voter approval.  The County is the sole agency responsible for levying and collecting the property taxes and distributing them to taxing jurisdictions.  Taxes are allocated and distributed based upon each taxing jurisdiction's assessed valuations and upon any voter-approved debt override on the tax rate.
The property tax calendar for the City is as follows:




Valuation date
January 1

Lien date
March 1

Levy dates
July 1 through June 30

Due dates
November 1; February 1

Collection dates
December 10; April 10

55

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) 

Pension Plan
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employee's Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by California Public Employees' Retirement System (CalPERS). For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less,  are reported at cost. 
Cash Flow Statements
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, deposits, short-term investments and cash and investments with fiscal agents.  Cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less meet this definition. 
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period.  Actual results could differ from those estimates.
E.Stewardship, Compliance, and Accountability 
Budgets and Budgetary Accounting
The procedures established by the City Council in adopting the budgetary data reflected in the financial statements are as follows:
4.Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1.  The operating budget includes proposed expenditures and the means of financing them.
5.Public hearings are conducted to obtain taxpayer comments.
6.The City Council legally enacts the budget by resolution before July 1.
The City Manager is authorized to transfer budgeted amounts between departments within any fund and approve reductions of budgeted amounts.  Since expenditures may not exceed budgeted appropriations at the fund level, any revisions that alter the total appropriations of any fund are to be approved by the City Council.  Projects budgeted within the current fiscal year but not yet completed can be re-appropriated the following fiscal year with City Manager approval.  All other unencumbered appropriations lapse at year-end. Encumbered amounts are re-appropriated in the ensuing fiscal year budget.
56

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
E.Stewardship, Compliance, and Accountability (continued) 
Budgets are adopted for all governmental fund types and are prepared on a basis consistent with GAAP. Budgeted amounts are as originally adopted, or as amended by the City Council.  During the fiscal year ended June 30, 2019, the City Council approved $73,254,062 of increases to the originally adopted budget, excluding carryovers of prior year encumbered balances and selected capital appropriations.
Deficit Net Position
The Self-Insurance Internal Service Fund reported a deficit in net position of $20,754,190 at the close of the fiscal year. The continued deficit is the result of a significant increase in the workers' compensation liability calculated in the City’s most recent actuarial study. Workers' compensation charges can fluctuate significantly from year to year and staff will continue to adjust departmental rates accordingly to maintain sufficient funding levels. 
Reclassification and Eliminations
Interfund balances must generally be eliminated in the government-wide financial statements, except for net residual amounts due between governmental activities.  Amounts involving fiduciary funds should be reported as external transactions.  Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once, in the function in which they are allocated.
Excess of Expenditures Over Appropriations
For the fiscal year ended June 30, 2019, expenditures exceeded appropriations for transfers to other funds in the Transient Occupancy Taxes Fund by $9,354. This over-expenditure relates to budgeted estimates related to anticipated loan repayment costs for lighting upgrades at the Rabobank Arena and Convention Center facilities.  The actual required payment exceeded the estimate. There was also an over-expenditure in the amount of $19,704 in the General Fund for Public Safety. This overage is related to overtime worked for Police Department operations. These are technically considered budgetary violations and management will take steps to review periodic budget reports to ensure compliance in the future.
F.New Accounting Pronouncements 
During the fiscal year ending  June 30, 2019 the City implemented the following standards:
GASB issued Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. Upon implementation, there was no effect on the City's accounting or financial reporting. 
GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt.  Upon implementation, there was no effect on the City's accounting or financial reporting.   
57

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
F.New Accounting Pronouncements (continued) 
Recently released standards by GASB affecting future years are as follows: 
In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.  The City has elected not to early implement GASB Statement No. 84 and has not determined its effects on the City’s financial statements.
In June 2017, GASB issued Statement No. 87, Leases.The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financing of the right to use an underlying asset. The City has elected not to early implement GASB Statement No. 87 and has not determined its effects on the City’s financial statements.
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period.  The objectives of this statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period. The City has elected not to early implement GASB Statement No. 89 and has not determined its effects on the City's financial statements.
In August 2018, GASB issued Statement No. 90, Majority Equity Interests.  The objectives of this statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The City has elected not to early implement GASB Statement No. 90 and has not determined its effects on the City's financial statements.
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations.  The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related to note disclosures. The City has elected not to early implement GASB Statement No. 91 and has not determined its effects on the City's financial statements.
58

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS 
Cash and investments as of June 30, 2019, are classified in the accompanying financial statements as follows:


Statement of net position:
Cash and investments
$375,771,316
Fiduciary funds:
Cash and investments
124,601,019
$500,372,335
Cash and investments as of June 30, 2019, consist of the following:


Cash on hand
$6,039,206
Deposits with financial institutions
1,765,424
Investments
492,662,741
GASB Stmt. No. 31 Fair Value Adjustment
(95,036)
$500,372,335
Investment Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code, or the City’s investment policy, where more restrictive. The table also identifies the more restrictive provision of the California Government Code or the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk.  This table does not address investment of any debt proceeds held by bond trustee's that are governed by the provisions of the City’s debt agreements, rather than the general provisions of either the California Government Code or the City’s investment policy.
 
Maximum
Percentage
Maximum
Authorized Investment Types
of Portfolio
Maturity
U.S. Treasury Bills, Notes and Bonds
0 to 100%
5 Years
U.S. Government Agency Obligations
20% per agency
5 Years
Bankers' Acceptances
40%
180 Days
Commercial Paper
25%
270 Days
Repurchase Agreements
30%
90 Days
Local Agency Investment Fund
40%
N/A
Time Certificates of Deposit
40%
5 Years
Public Agency Demand Accounts
30%
N/A
Mutual Funds
20%
N/A
59

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued) 

Investment Authorized by Debt Agreements
The City and its component units have $368,502 in investments held by bond trustees pledged to the payment or security of certain debt issues.  These investments are held in direct obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States Government or an agency thereof.  The California Government Code provides that monies held by a bond trustee pledged to the payment or security of debt issues, in absence of specific statutory provisions governing the issuance of the debt, may be invested in accordance with the ordinances, resolutions, or indentures specifying the types of investments the respective bond issue’s trustee may make.  The obligations described above are authorized per the investment agreements with the bond trustees and include, but are not limited to, Federal Land Bank Bonds, Federal Home Loan Bank notes and bonds, Export-Import Bank notes and guaranteed participation certificates, obligations of or fully guaranteed by the Government National Mortgage Association, Federal National Mortgage Association notes, debentures and guaranteed certificates of participation, obligations of the International Bank of Reconstruction and Development and Federal Home Loan Mortgage Corporation notes.
Interest Rate Risk
Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment.  Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.  As part of the City’s investment policy, one of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
 



Remaining Maturity (In Months)




Investment Type
Fair
Value
Cost
12 Months
Or Less
13 - 24
Months
25-60
Months
More Than
60 Months
U.S. Government Agency Obligations:
Federal Farm Credit Bank
$54,519,345
$54,488,200
$12,498,200
$22,000,000
$19,990,000
$-
Federal Home Loan Bank
45,879,415
45,976,640
15,000,000
12,976,640
18,000,000
-
Federal Home Loan Mortgage Corp.
49,703,925
49,740,000
15,000,000
18,000,000
16,740,000
-
Federal National Mortgage Assn.
42,565,386
42,558,269
18,330,819
22,227,450
2,000,000
-
PEFCO
678,402
678,402
-
355,903
322,499
-
Commercial Paper
-
-
-
-
-
-
Bankers' Acceptances
-
-
-
-
-
-
U.S. Treasury Bills, Notes, and Bonds
-
-
-
-
-
-
Local Agency Investment Fund
122,654,871
122,654,871
122,654,871
-
-
-
CAMP
84,933,751
84,933,751
84,933,751
-
-
-
Mutual Funds (1)
91,264,108
91,264,106
91,264,106
-
-
-
Investment Contracts
368,502
368,502
-
-
-
368,502
Total
$492,567,705
$492,662,741
$359,681,747
$75,559,993
$57,052,499
$368,502
(1) See Note 17 for Other Post-Employment Benefits
60

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued) 

Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
Except as inherent by their nature as disclosed above, the City’s investments (including those held by a bond trustee) are not highly sensitive to interest rate fluctuations.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year end for each investment type.  On August 5, 2011, the rating agency of Standard & Poors (S&P) assigned a negative outlook to the credit rating of the United States government.  On August 8, 2011, S&P then downgraded that credit rating to AA+ from AAA.


Remaining as of the Year-End
Investment Type
Minimum
Legal
Rating
AAA
AA+
Not
Rated
U.S. Government Agency Obligations:
Federal Farm Credit Bank
$54,488,200
$-
$54,488,200
$-
Federal Home Loan Bank
45,976,640
-
45,976,640
-
Federal Home Loan Mortgage Corp.
49,740,000
-
49,740,000
-
Federal National Mortgage Assn.
42,558,269
-
42,558,269
-
PEFCO
678,402
-
678,402
-
Commercial Paper
-
-
-
-
Bankers' Acceptances
-
-
-
-
U.S. Treasury Bills, Notes, and Bonds
-
-
-
-
Local Agency Investment Fund
122,654,871
-
-
122,654,871
CAMP
84,933,751
-
-
84,933,751
Mutual Funds (1)
91,264,106
91,264,106
-
-
Investment Contracts
368,502
-
-
368,502
Total
$492,662,741
$91,264,106
$193,441,511
$207,957,124
(1) See Note 17 for Other Post-Employment Benefits
Concentration of Credit Risk
The City’s investment policy does not limit the amount that can be invested in any one issuer beyond the limitations stipulated by the California Government Code.  Investments in any one issuer (other than United States Treasury securities, mutual funds and external investment pools) that represent 5% or more of the City’s total investments are as follows.
 
Issuer
Investment Type
Reported Amount
Percentage
Federal Farm Credit Bank
Federal Agency Securities
$54,488,200
11%
Federal Home Loan Bank
Federal Agency Securities
45,976,640
9%
Federal Home Loan Mortgage Corp.
Federal Agency Securities
49,740,000
10%
Federal National Mortgage Assn.
Federal Agency Securities
42,558,269
9%
61

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued) 
Custodial Credit Risk
Custodial credit risk for deposits is the risk that the City will not be able to recover its deposits or will not be able to recover collateral securities in the possession of an outside party if a depository institution fails.  The custodial credit risk for investments is the risk that the City will not be able to recover the value of its investment or collateral securities held by another party if the counterparty (e.g., broker-dealer) to a transaction fails.  The California Government Code and City’s investment policy do not contain legal or policy requirements that would limit exposure to custodial credit risk for deposits or investments, other than the following provision applicable to deposits:  The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).  The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.  California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2019, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in fully collateralized accounts, as permitted by the California Government Code.  As of June 30, 2019, all of the City’s investments were held by the City itself or by a broker-dealer (counterparty) other than the broker-dealer used by the City to purchase the securities in the City’s name.
Investment in State Investment Pools
Investments are stated at fair value. Fair value is established quarterly based on quoted market prices received from the securities custodian. Fair value of investments held fluctuates with interest rates. The fair value of participants’ position in the pool is the same as the value of the pool shares. The value of participants’ equity withdrawn is based on the book value of the participants’ percentage participation at the date of such withdrawal.
The California State Treasurer’s Office operates the Local Agency Investment Fund (LAIF). The LAIF is available for investment of funds administered by California local governments and special districts and is not registered with the Securities and Exchange Commission (SEC) as an investment company. The enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code. California Asset Management Program (CAMP) is a California Joint Powers Authority established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p).
The LAIF and CAMP operate and report to participants on an amortized cost basis. For both the LAIF and CAMP, the income, gains, and losses, net of administration fees, are allocated based upon the participant’s average daily balance. Deposits in the LAIF and CAMP are not insured or otherwise guaranteed by the State of California, and participants share proportionally in any realized gains or losses on investments. The fair value of the LAIF and CAMP investment pools are approximately equal to the value of the pool shares.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy used to measure the fair value of the asset is based on the following:
Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities, that each fund has the ability to access. 
Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and default rates) or other market-corroborated inputs).
Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each fund's own assumptions used in determining the fair value of investments).
The City has a reported fair value of investments of $492,567,705, of which  $193,346,473 are valued using Level 1 inputs.
62

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued) 
These include all of the U.S Government Agency Obligations and Time Certificates of Deposit. The remaining investments are valued using Level 2 inputs.

NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES 
Accounts receivable at June 30, 2019 of the City's major individual funds and non-major and internal service funds in the aggregate, including the applicable allowance for uncollectible accounts, are as follows:

Accounts Receivable -
  Governmental Funds:
General
Fund
Transient
Occupancy
Taxes
Fund
Community
Development
Block Grant
Fund
Gas Tax
& Road
Fund
Capital
Outlay
Transportation
 Development
Non-Major
Governmental
Funds
Internal
Service
Funds
Total
Governmental
Activities
Taxes
$-
$968,364
$-
$-
$-
$-
$-
$-
$968,364
Accounts
794,606
-
14,738,224
22,031
644,607
-
6,313,033
177,926
22,690,427
Gross Receivables
794,606
968,364
14,738,224
22,031
644,607
-
6,313,033
177,926
23,658,791
Less: Allowance
for Uncollectible
-
-
-
-
-
-
-
(152,675)
(152,675)
Total Accounts Receivable - Net
$794,606
$968,364
$14,738,224
$22,031
$644,607
$-
$6,313,033
$25,251
$23,506,116

 
Accounts Receivable -
Proprietary Funds:
Wastewater
Treatment
Fund
Refuse
Collection
Fund
Agricultural
Water
Fund
Domestic
Water
Fund
General
Aviation
Fund
Offstreet
Parking
Fund
Total
Business-Type
Activities
Accounts
$1,316,561
$1,260,841
$5,939,667
$3,031,198
$14,219
$3,300
$11,565,786
Gross Receivables
1,316,561
1,260,841
5,939,667
3,031,198
14,219
3,300
11,565,786
Less: Allowances for
Uncollectible
-
-
-
-
-
-
-
Total Accounts Receivable - Net
$1,316,561
$1,260,841
$5,939,667
$3,031,198
$14,219
$3,300
$11,565,786
Accounts payable and accrued liabilities at June 30, 2019, are composed of the following:
 
Accounts Payable and
Accrued Liabilities
General
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road
Capital
Outlay
Park
Improvement
Transportation
Development
Governmental Activities:
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Accounts payable
$5,505,432
$26,745
$433,278
$8,791,445
$2,211,547
$3,121,957
$1,674,270
Total Accounts Payable
and Accrued Liabilities
$5,505,432
$26,745
$433,278
$8,791,445
$2,211,547
$3,121,957
$1,674,270
63

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES (continued) 
Accounts Payable and
Accrued Liabilities
Non-Major
Governmental
Internal
Service
Total
Governmental
Governmental Activities:
Funds
Funds
Activities
Accounts payable
$282,319
$1,888,063
$23,935,056
Total Accounts Payable
and Accrued Liabilities
$282,319
$1,888,063
$23,935,056

Accounts Payable and
Accrued Liabilities -
Wastewater
Treatment
Refuse
Collection
Agricultural
Water
Domestic
Water
General
Aviation
Offstreet
Parking
Total
Business-Type
Business-Type Activities:
Fund
Fund
Fund
Fund
Fund
Fund
Activities
Accounts payable
$1,588,008
$2,536,213
$184,349
$3,820,769
$39,832
$12,158
$8,181,329
Accrued interest
2,099,625
-
-
-
-
-
2,099,625
Total Accounts Payable
and Accrued Liabilities
$3,687,633
$2,536,213
$184,349
$3,820,769
$39,832
$12,158
$10,280,954
NOTE 4 - DUE FROM OTHER GOVERNMENTS 
Amounts due from other governments at  June 30, 2019 are comprised of the following:


Federal
Government
State of
California
County/City Agencies
Total
Governmental
Activities
Business-Type
Activities
Total
Reporting
Entity


Senate Bill (SB) 90 Claims
$-
$3,045,737
$-
$3,045,737
$-
$3,045,737

Sales Tax
-
25,784,855
-
25,784,855
-
25,784,855

Property Tax
-
-
356,669
356,669
164,186
520,855

State Homeland Security
-
4,355
-
4,355
-
4,355

Caltrans
-
32,237
-
32,237
300,307
332,544

SB 1 - Road Maint & Rehab
-
1,266,056
-
1,266,056
-
1,266,056

Department of Fish & Game
-
28,913
-
28,913
-
28,913

Department of Transportation
39,020,038
-
-
39,020,038
10,000
39,030,038

Federal Aviation Administration
-
-
-
-
16,320
16,320

Economic & Community Development
709,344
-
-
709,344
-
709,344

Kern Council of Governments
-
-
197,757
197,757
-
197,757

Kern County Waste Management
-
-
-
-
1,262,484
1,262,484

Totals
$39,729,382
$30,162,153
$554,426
$70,445,961
$1,753,297
$72,199,258
64

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS 
Capital asset activities for the year ended June 30, 2019, were as follows:


Balance



Balance


June 30, 2018
Adjustments
Additions
Retirements
June 30, 2019

Governmental Activities

Capital assets, not being depreciated

Land
$448,509,830
$-
$849,903
$-
$449,359,733

Construction in progress
104,712,586
-
30,832,585
29,992,866
105,552,305

Total capital assets, not being depreciated
553,222,416
-
31,682,488
29,992,866
554,912,038

Capital assets, being depreciated

Buildings, structures and improvements
144,918,758
-
5,021,561
-
149,940,319

Infrastructure
1,658,571,537
-
64,349,663
-
1,722,921,200

Rolling equipment
90,470,201
47,355
11,193,335
2,919,225
98,791,666

Furniture and other equipment
23,400,364
192,461
516,126
553,850
23,555,101

Total capital assets, being depreciated
1,917,360,860
239,816
81,080,685
3,473,075
1,995,208,286


Less accumulated depreciation for

Buildings, structures and improvements
(75,861,675)
-
(3,843,552)
-
(79,705,227)

Infrastructure
(1,009,265,236)
-
(55,274,149)
-
(1,064,539,385)

Rolling equipment
(54,633,613)
12,091
(6,728,355)
(2,702,730)
(58,647,147)

Furniture and other equipment
(15,628,838)
9,140
(1,101,263)
(351,802)
(16,369,159)

Total accumulated depreciation
(1,155,389,362)
21,231
(66,947,319)
(3,054,532)
(1,219,260,918)

Total capital assets, being depreciated, net
761,971,498
261,047
14,133,366
418,543
775,947,368

Governmental activities capital assets, net
$1,315,193,914
$261,047
$45,815,854
$30,411,409
$1,330,859,406


Business-Type Activities

Capital assets, not being depreciated

Land
$23,620,851
$-
$9,234
$-
$23,630,085

Water rights
31,476,906
-
-
-
31,476,906

Construction in progress
43,435,606
36,015
21,594,284
8,445,218
56,620,687

Total capital assets, not being depreciated
98,533,363
36,015
21,603,518
8,445,218
111,727,678

Capital assets, being depreciated

Buildings, structures and improvements
325,453,657
-
2,294,540
-
327,748,197

Infrastructure
811,662,757
-
21,769,957
36,014
833,396,700

Equipment
77,841,015
-
888,860
-
78,729,875

Total capital assets being depreciated
1,214,957,429
-
24,953,357
36,014
1,239,874,772

Less accumulated depreciation for

Buildings, structures and improvements
(121,562,714)
-
(8,663,115)
-
(130,225,829)

Infrastructure
(277,083,729)
-
(12,870,623)
-
(289,954,352)

Equipment
(36,367,603)
-
(4,136,284)
-
(40,503,887)

Total accumulated depreciation
(435,014,046)
-
(25,670,022)
-
(460,684,068)

Total capital assets, being depreciated, net
779,943,383
-
(716,665)
36,014
779,190,704

Business-type activities capital assets, net
$878,476,746
$36,015
$20,886,853
$8,481,232
$890,918,382
65

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS (continued) 
Depreciation and amortization expense was charged in the following functions in the Statement of Activities:


Governmental functions:
Depreciation

General government
$1,532,456

Public safety - Police
385,467

Public safety - Fire
887,043

Public works
60,898,232

Recreation and parks
2,877,763

Development services
366,358


Total
$66,947,319

Business-type functions:

Wastewater treatment
$20,182,171

Refuse collection
63,946

River & agricultural water
387,590

Domestic water
4,700,537

General aviation
245,150

Offstreet parking
90,628


Total
$25,670,022

NOTE 6 - LAND HELD FOR RESALE 
The City, as the Redevelopment Successor Agency, has been transferred real property to be held for a limited period that will be used for future development. The inventory for land held for resale is presented at the lower of cost or net realizable value though it is initially recorded at historical costs. Subsequently, the land could be adjusted to net realizable value if and when the City enters into agreements for development or sale of the property for less than its historical cost, when a property is impaired or when property value decreases due to market conditions. 



Balance at


Balance at

Redevelopment Successor Agency - Housing
June 30, 2018
Additions
Deletions
June 30, 2019

Land Held for Resale
$1,266,016
$-
$67,272
$1,198,744

$1,266,016
$-
$67,272
$1,198,744

66

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES 
Other long-term receivables consist of the following:




Governmental Activities

Loans receivable in the internal service funds due from the Bakersfield 
Redevelopment Agency's Southeast Project Area from the Mill Creek South
 mixed use development project. This loan has an interest rate tied to the LAIF rate (currently at .244% and an eight year payment period per Agreement 06-124).
$410,846


Deferred loans receivable associated with the low and moderate
income housing project. These loans bear 0-3% interest and
are not due until ten years after the loan agreement date (also
see deferred revenue at Note 9).
3,671,422


Mercy Housing, Madison Place Apartments, 55 year term, with 1/55 to be forgiven 
each year of compliance to agreement.
264,666


Amcal Santa Fe Apartments, 55 year term, repayment begins from residual
receipts following the date that the housing project is put in service.
134,691


Down payment assistance loans.
1,933,899


19th Street Senior Plaza, LLC, a 55 year loan term upon recordation of
Certificate of Completion.
1,688,375


Park 20th Apartments, a 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%.
2,732,783


Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A  55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%.
6,506,184


Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A  55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 2.0%.
4,487,149


CalHOME Downpayment Assistance for a grant from the State which provided
 downpayment and closing cost assistance to seventeen (17) families within the
 Metropolitan Bakersfield area. The assistance was provided to those families
 whose incomes were at or below 120% of area median income. The loans of up to
 $40,000 are forgiven at 1/15th per year.
344,330


Golden Empire Housing, Park Place Apartments, 55 year loan term
beginning July 12, 1999, ending on July 12, 2054, with the interest payment
being deferred for first ten years, until year 2010, with an interest rate of 1.5%.
807,356


Capital Vision Equities, City Center Senior Housing, 35 year loan term beginning
on March 28, 2001, ending March 28, 2036, with an interest rate of 5.85%.
990,000


Canyon Hills Assembly of God, Senior Housing Project 30 year loan term
beginning July 30, 2001 ending July 30, 2031, with an interest rate of 0%.
310,000
67

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES (continued) 





Mill Creek Courtyard CIC - SEPA - Senior Housing Project.  A 55 year loan term beginning from the date of execution by the developer.
2,520,000

Face value of loans
$26,801,701


Current portion
$410,846

Long-term portion
26,390,855

Total governmental activities receivable
$26,801,701


Business-Type Activities

Notes receivable in the River & Agricultural Water Fund are for the
amounts due from various customers/vendors.
These loans are non-interest bearing.
$31,777


Long-term receivable under agreement 87-153(5) between the City
and Dreyer's Grand Ice Cream Inc. for additional flow and 
and treatment capacity in Wastewater Treatment Plant #3.
320,440


Long-term receivable under Agreement 14-042 between the City and a 
local citizen to purchase surplus land adjacent to their business. Property
 was held in the Offstreet Parking Fund.
24,461



Total business-type noncurrent receivables
$376,678

68

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS 
Interfund transactions are comprised of loans, services provided, reimbursements, or transfers. Loans are reported as amounts “due to/due from” other funds or as “advances,” as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental activities and business-type activities are netted as part of the consolidation required to produce the government-wide financial statements.  
Interfund receivable and payable balances at June 30, 2019 were:
 

Fund
Due from
Other Funds
Due to
Other Funds

Governmental Funds:

Major Funds:

General Fund
$18,649,197
$-

Gas Tax & Road Fund
$-
$18,649,197

These balances are a result of expenditures incurred prior to the receipt of the related special revenue source.  
Interfund transfers at June 30, 2019 consisted of the following:
 


Transfers In
Transfers Out

Governmental Funds:

Major Funds:

General Fund
$1,200,000
$3,734,670

Transient Occupancy Taxes Fund
-
7,791,897

Community Development Block Grant Fund
-
507,545

Capital Outlay Fund
11,238,500
-

Non-Major Funds:

State Safety Fund
-
30,000

Traffic Safety Fund
-
1,200,000

General Obligation Debt Fund
686,630
-

Proprietary Funds:

Major Funds:

Wastewater Treatment Fund
-
808,447

Refuse Collection Fund
-
2,890,840

River & Agricultural Water Fund
-
404,110

Offstreet Parking Fund
45,000
-

Internal Service Funds:

Self-Insurance Fund
-
148,943

Equipment Management Fund
4,346,322
-

$17,516,452
$17,516,452

Additional details regarding transfers in and out of various funds are provided below:
The $1,200,000 transfer in to the General Fund is from the Traffic Safety Fund that subsidized the cost of the traffic
69

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS (continued) 
division of the police department for parking fine violations.  
The $3,734,670 transfer from the General Fund includes a transfer to the Municipal Debt Fund of $141,670 for the repayment of a loan from PG&E for lighting improvement projects downtown as well as $45,000 to the Offstreet Parking Fund for increased security, and $1,000,000 to replenish the Facility Reserve Fund.
The $7,791,897 transfers from the Transient Occupancy Taxes Fund include: $7,750,000 transferred to the Capital Outlay Fund to fund a number of capital projects, $37,415 to the General Obligation Debt Fund for the repayment of a loan from PG&E for an energy efficiency retrofit at Rabobank Arena, and $4,482 to the Equipment Fund for additional funding to replace equipment.
The $507,545 transfer from the Community Development Block Grant (CDBG) Fund to the General Obligation Debt Fund is for the repayment of a Section 108 loan.
There were additional transfers to the Equipment Management Fund to purchase additional equipment for operations which include: the General Fund ($59,500), the Certified Unified Program Agency (CUPA) Fund ($30,000), the Transient Occupancy Tax Fund ($4,482), the Sewer Fund ($808,447), the Refuse Fund ($2,890,840), the River & Agricultural Water Fund ($404,110) and the Self-Insurance Fund ($148,943).
NOTE 9 - ADVANCES FROM GRANTORS AND THIRD PARTIES 
The government-wide Statement of Net Position as well as governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of year-end but not yet earned because under both the accrual and  modified accrual basis of accounting revenue may be recognized only when earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for advances from grantors and third parties.
The following table summarizes Advances from Grantors and third parties for the City at June 30, 2019:



Balance at


June 30, 2019

Governmental Activities:

General Fund

Dog License
$87,554

Business License
1,940,769

General Fund Total
2,028,323

Non-Major Funds:

State Transportation - Grants Advanced
206,431

Redevelopment Successor Agency - Housing
22,719,433

Total Governmental Activities
$24,954,187

Business-Type Activities:

Wastewater Treatment
$320,440

Refuse Collection
128,931

Total Business-Type Activities
$449,371
70

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 10 - CAPITAL LEASE 
The City entered into a long-term lease agreement in September 2005 for the acquisition of water rights with the Kern County Water Agency (KCWA).  The agreement entitles the City to receive 6,500 acre feet of water per year in exchange for annual payments tied to KCWA’s Water Revenue certificates of participation from 2006 and 2008, which were used for the expansion of its water treatment facility.  On March 1, 2016, KCWA issued Water Revenue Refunding Bonds. These new bonds refunded the previous debt that the City's lease payments were based upon.  The City’s lease payments coincide with the amortization schedule for the related KCWA debt with the value of the related water rights at $17,671,298. The total lease obligation for the term of this agreement is as follows:



Business-Type Activities

Year ending
Lease
Interest
Total


2020
$670,701
$679,306
$1,350,007

2021
695,723
653,095
1,348,818

2022
678,990
668,624
1,347,614

2023
712,201
636,691
1,348,892

2024
747,648
602,990
1,350,638

2025-2029
4,312,404
2,434,350
6,746,754

2030-2034
5,363,612
1,382,951
6,746,563

2035-2039
4,490,019
409,788
4,899,807

Totals
$17,671,298
$7,467,795
$25,139,093



Balance at June 30, 2018
Additions
Principal Retirement
Balance at June 30, 2019

Business-Type Activities

Capital Leases:

Water rights
$18,315,293
$-
$643,995
$17,671,298

$18,315,293
$-
$643,995
$17,671,298
71

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT 
Long-term debt transactions for the fiscal year ending June 30, 2019 are summarized below:



Business-Type Activities


Governmental
Activities
General Obligations
Revenue
Obligations
Total
Total
Government
Payable at June 30, 2018:
Bonds 
$-
$-
$166,998,212
$166,998,212
$166,998,212
Certificates of Participation
11,275,000
-
-
-
11,275,000
Notes
2,584,240
2,256,378
-
2,256,378
4,840,618
Contracts/Loans
-
368,746
-
368,746
368,746
Claims and Judgments Payable
47,564,651
-
-
-
47,564,651
Compensated Absences
15,101,325
1,950,737
-
1,950,737
17,052,062
Subtotal
76,525,216
4,575,861
166,998,212
171,574,073
248,099,289
New debt incurred:
Bonds 
-
-
-
-
-
Notes
4,136,541
-
-
-
4,136,541
Claims and Judgments Payable
962,650
-
-
-
962,650
Compensated Absences
8,376,358
1,036,513
-
1,036,513
9,412,871
Subtotal
13,475,549
1,036,513
-
1,036,513
14,512,062
Principal reductions:
Bonds
-
-
6,868,638
6,868,638
6,868,638
Certificates of Participation
2,640,000
-
-
-
2,640,000
Notes
609,305
752,126
-
752,126
1,361,431
Contracts/Loans
-
54,531
-
54,531
54,531
Compensated Absences
7,956,005
1,012,305
-
1,012,305
8,968,310
Subtotal
11,205,310
1,818,962
6,868,638
8,687,600
19,892,910
Payable at June 30, 2019:
Bonds
-
-
160,129,574
160,129,574
160,129,574
Certificates of Participation
8,635,000
-
-
-
8,635,000
Notes
6,111,476
1,504,252
-
1,504,252
7,615,728
Contracts/Loans
-
314,215
-
314,215
314,215
Claims and Judgments Payable
48,527,301
-
-
-
48,527,301
Compensated Absences
15,521,678
1,974,945
-
1,974,945
17,496,623
Total Payables
$78,795,455
$3,793,412
$160,129,574
$163,922,986
$242,718,441
72

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements

NOTE 11 - LONG-TERM DEBT (continued) 


Business-Type Activities


Governmental
Activities
General
Obligations
Revenue
Obligations
Total
Total
Government
Due Within One Year:
Bonds 
$-
$-
$7,298,638
$7,298,638
$7,298,638
Certificates of Participation
2,760,000
-
-
-
2,760,000
Notes
1,243,689
752,126
-
752,126
1,995,815
Total Long-term Debt
4,003,689
752,126
7,298,638
8,050,764
12,054,453
Contracts/Loans
-
314,215
-
314,215
314,215
Claims and Judgments Payable
12,705,801
-
-
-
12,705,801
Compensated Absences
2,391,510
604,974
-
604,974
2,996,484
Total Due Within One Year
$19,101,000
$1,671,315
$7,298,638
$8,969,953
$28,070,953
Due in More Than One Year:
Bonds
$-
$-
$152,830,936
$152,830,936
$152,830,936
Certificates of Participation
5,875,000
-
-
-
5,875,000
Notes
4,867,787
752,126
-
752,126
5,619,913
Total Long-term Debt
10,742,787
752,126
152,830,936
153,583,062
164,325,849
Claims and Judgments Payable
35,821,500
-
-
-
35,821,500
Compensated Absences
13,130,168
1,369,971
-
1,369,971
14,500,139
Total Due in More Than One Year
$59,694,455
$2,122,097
$152,830,936
$154,953,033
$214,647,488
The liability for pension-related debt, OPEB debt, and compensated absences for governmental activities is primarily liquidated by the General Fund with smaller portions charged to other funds in an amount proportional to the personnel costs incurred. The pension related debt and compensated absences for business-type activities will be paid by the respective proprietary funds.
Long-term debt payable at June 30, 2019, was comprised of the following individual issues:

Bonds

General obligation bonds serviced by business-type activities:


$145,500,000 Wastewater Revenue Bonds 2015 Series A - The 2007 Series A bonds were refunded in 2015 with a partial call of the outstanding principal amount of $156,750,000 as well as payment of the issuance costs. The proceeds of the original Series 2007A refunded bonds were used to finance a portion of certain capital improvements at the City's wastewater and sewage collection treatment and disposal system; interest rate of 5.00%. (This issue is serviced by the Wastewater Treatment Fund.)
$139,975,000


Unamortized Bond Premium on Wastewater Revenue Bonds
20,154,573

Total Bonds
$160,129,573


Certificates of Participation:
73

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements

NOTE 11 - LONG-TERM DEBT (continued) 

Certificates of participation serviced by Transient Occupancy Tax revenue via lease
payments from the City to the Redevelopment Successor Agency:
$25,335,000 - 2006 Refunding Certificates of Participation Series A assumed by
the City as the successor agency of the former redevelopment agency. Certificates are
due in annual principal installments of $900,000 to $2,170,000 commencing
October 1, 2006 through 2022; interest ranging from 4.00% to 4.25%.
$6,265,000


$9,470,000 - 2006 Refunding Certificates of Participation Series B assumed by
the City as the successor agency of the former redevelopment agency. Certificates are
due in annual principal installments of $345,000 to $830,000 commencing
October 1, 2006 through 2022; interest ranging from 4.00% to 5.00%.
2,370,000

Total Certificates of Participation
$8,635,000

Notes/Loans:

General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement): $4,100,000 Housing & Urban Development (HUD) Section 108 Loan 2003 - Due in annual principal installments of $137,000 to $320,000 commencing 
August 1, 2004 through August 2022; interest ranging from 1.75% to 4.76%.
$1,194,000


General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement): $800,000 HUD Section 108 Loan 2003 - due in annual principal
installments of $24,000 to $61,000 commencing August 1, 2005 through August
2023; interest ranging from 1.61% to 4.76%.
276,000


General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement), $1,800,000 HUD Section 108 Loan 009 - due in annual principal
installments of $140,000 to $230,000 commencing August 2010 through August
2021; interest ranging from 0.56% to 3.73%.
426,000


General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):  $237,033 PG&E loan used for an energy efficient lighting upgrade at in the Downtown area of the City. The payments will be made on PG&E bills starting March 2015. This loan contains no interest charges.
38,232


General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):  $47,636 PG&E loan used for an energy efficient lighting upgrade at Police Headquarters.  The payments will be made starting September 13, 2017 in 29 monthly payments of $1,642.62.  This loan contains no interest charges.
11,498


General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):  $126,274 PG&E loan used for an energy efficient lighting upgrade at Rabobank Theater. The payments will be made starting March 12, 2018 in 54 monthly payments of $2,338.40.  This loan contains no interest charges.

88,859
74

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements

NOTE 11 - LONG-TERM DEBT (continued) 

General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):  $1,420,717 PG&E loan used for an energy efficient lighting upgrade throughout the city. The payments will be made in 80 monthly payments of $17,758.96.  This loans contain no interest charges.
1,385,199

General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):  $1,979,307 PG&E loan used for an energy efficient lighting upgrade throughout the city. The payments will be made in 80 monthly payments of $24,137.89.  This loans contain no interest charges.
1,955,169

General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):  $736,517 PG&E loan used for an energy efficient lighting upgrade throughout the city. The payments will be made in 46 monthly payments of $16,011.  This loans contain no interest charges.contain no interest charges.
736,517

General obligation notes serviced by Business-Type Activities:                                      $14,263,555 note payable to California State Water Resources Control Board - Original advances of $14,954,054 payable without interest in twenty annual installments beginning in fiscal year 2004-05 by the Wastewater Treatment Fund.
1,504,254

Total general obligation notes/loans payable
$7,615,728

75

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements

NOTE 11 - LONG-TERM DEBT (continued) 


Compensated Absences:

Government Activities
$15,521,678

Business-Type Activities
1,974,945

Total Compensated Absences
$17,496,623
A summary of the City's debt service requirements outstanding at June 30, 2019, is as follows:


Total
Government

Principal:

Governmental Activities
$78,795,457

Business-Type Activities:

General Obligations
3,793,412

Revenue Obligations
160,129,573


Subtotal - Principal
242,718,442


Less: Claims and Judgments Payable included
above that bear no interest and have
no schedule of repayment terms
48,527,301


Less: Kern River Levee District Payable
included above that bears no interest and
has no schedule of repayment terms
314,215


Less: Unamortized premium for Wastewater
revenue bond
20,154,573


Less: Compensated Absences included above that bear
 no interest and have no schedule of repayment terms
17,496,623


Total Principal with Scheduled
Repayment Terms
156,225,730


Interest on Obligations
57,329,403


Total Debt Service Requirements
$213,555,133

76

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements

NOTE 11 - LONG-TERM DEBT (continued) 

The annual requirement to amortize the principal and interest on long-term debt at  June 30, 2019 is as follows:

Government-Type Activities
Year ending

Principal

Interest

Bonds/COP
Notes/Loans
Total
Bonds
Notes/Loans
Total
2020
$2,760,000
$1,243,689
$4,003,689
$374,526
$41,791
$416,317
2021
2,875,000
1,208,959
4,083,959
256,625
30,500
287,125
2022
3,000,000
1,222,959
4,222,959
133,724
17,811
151,535
2023
-
1,106,551
1,106,551
-
7,193
7,193
2024
-
502,763
502,763
-
-
-
2025-2029
-
826,557
826,557
-
-
-
Totals
$8,635,000
$6,111,478
$14,746,478
$764,875
$97,295
$862,170

Business-Type Activities
Year ending

Principal
Interest

Bonds/COP
Notes/Loans
Total
Bonds
Notes/Loans
Total
2020
$5,955,000
$752,126
$6,707,126
$6,849,875
$150,429
$7,000,304
2021
7,245,000
752,126
7,997,126
6,519,875
150,429
6,670,304
2022
7,670,000
-
7,670,000
6,147,000
-
6,147,000
2023
7,995,000
-
7,995,000
5,755,375
-
5,755,375
2024
8,450,000
-
8,450,000
5,344,250
-
5,344,250
2025-2029
49,605,000
-
49,605,000
19,727,375
-
19,727,375
2030-2034
53,055,000
-
53,055,000
5,822,625
-
5,822,625
Totals
$139,975,000
$1,504,252
$141,479,252
$56,166,375
$300,858
$56,467,233

Total Reporting Entity
Year Ending

Principal
Interest

Bonds/COP
Notes/Loans
Total
Bonds/COP
Notes/Loans
Total
2020
$8,715,000
$1,995,815
$10,710,815
$7,224,401
$192,220
$7,416,621
2021
10,120,000
1,961,085
12,081,085
6,776,500
180,929
6,957,429
2022
10,670,000
1,222,959
11,892,959
6,280,724
17,811
6,298,535
2023
7,995,000
1,106,551
9,101,551
5,755,375
7,193
5,762,568
2024
8,450,000
502,763
8,952,763
5,344,250
-
5,344,250
2025-2029
49,605,000
826,557
50,431,557
19,727,375
-
19,727,375
2030-2034
53,055,000
-
53,055,000
5,822,625
-
5,822,625
Totals
$148,610,000
$7,615,730
$156,225,730
$56,931,250
$398,153
$57,329,403
77

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 12 - PLEDGED REVENUES 
The City has pledged net revenues generated by the Wastewater Enterprise Fund to repay a total of $151.5 million in wastewater revenue bonds series 2015A  issued to finance a portion of the expansion and improvement of the City's wastewater and sewage collection and disposal system.
Each fiscal year, net revenues means all revenues of the enterprise fund received during the fiscal year less operation and maintenance costs for that fiscal year.  The pledge of net revenues does not constitute a lien upon any property of the City.  Proceeds of the bonds provided financing for expansion and upgrade of Wastewater Treatment Plant #3, and improvements to Wastewater Treatment Plant #2.  The bonds are payable through 2034 for 2015A bonds.  The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix, prescribe, revise, and collect rates, fees, and charges for the services and facilities of the system and revise the same whenever necessary, which will provide gross revenues in each fiscal year sufficient to pay the cost of operation and maintenance of the system; one hundred twenty five percent (125%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds; plus one hundred percent (100%) of all reserve and other payments required to be made pursuant to the ordinances authorizing the bonds.
NOTE 13 - DEFERRED INFLOWS OF RESOURCES 
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognized deferred inflows of resources in the governmental fund financial statements. These items are an acquisition of net fund balance by the City that is applicable to a future reporting period. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. Under the modified accrual basis of accounting, it is not enough that revenue has been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report deferred revenues in connection with receivables for revenues not susceptible to accrual, as deferred inflows of resources.
Deferred inflows of resources balances for the year ended June 30, 2019 were as follows:



Balance at
June 30, 2019

General Fund

California Water Receivable
$180,263

Code Enforcement Receivable
9,695

State Agencies (SB90)
3,045,737

General Fund Total
3,235,695

CDBG - Deferred Loans
18,392,057

Gas Tax & Road Fund
22,031

Capital Outlay Fund
46,606

Non-Major Funds

Neighborhood Stabilization
6,213,854


Total Governmental Funds
$27,910,243
78

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 14 - FUND BALANCES 
Fund balances for all major and non-major governmental funds as of June 30, 2019 are as follows (see Note 1 for description of the categories used):

General
Fund
Transient
Occupancy
Taxes Fund
Community
Development
Block Grant
Fund
Gas Tax
& Road
Fund
Capital
Outlay
Fund
Park
Improvement
Fund
Transportation
Development
Fund
Non-Major
Governmental
Funds
Total
Nonspendable
Prepaids/Deposits
$51,479
$-
$-
$-
$942,965
$-
$-
$-
$994,444
Subtotal
51,479
-
-
-
942,965
-
-
-
994,444
Restricted
Development services grants
-
-
616,909
-
-
-
-
371,871
988,780
Community redevelopment projects
-
-
-
-
-
-
-
2,168,569
2,168,569
Police services grants
-
-
-
-
-
-
-
1,807,055
1,807,055
Fire services grants
-
-
-
-
-
-
-
1,108,586
1,108,586
Assessment district projects
-
-
-
-
-
-
-
-
-
Public works grants
-
-
-
12,902,757
-
-
-
-
12,902,757
Subtotal
-
-
616,909
12,902,757
-
-
-
5,456,081
18,975,747
Committed
Legal & Professional services
58,619
-
-
-
22,528
-
-
-
81,147
City facility construction & refurbishment projects
-
-
-
-
19,724,607
-
-
-
19,724,607
Police service contracts
178,559
-
-
-
761,725
-
-
-
940,284
Fire service contracts
-
-
-
-
398,620
-
-
-
398,620
Public works 
improvement contracts
-
-
-
-
1,355,695
-
51,551,913
-
52,907,608
Park improvement contracts
-
-
-
-
359,440
4,805,694
-
-
5,165,134
Tourism and promotional contracts
-
13,470
-
-
-
-
-
-
13,470
Development Services contracts
787,604
-
-
-
418,448
-
-
-
1,206,052
Cash basis reserve
26,463,606
-
-
-
-
-
-
-
26,463,606
Facility replacement reserve
-
-
-
-
3,606,764
-
-
-
3,606,764
Appropriation for next
year's budget
-
-
-
-
-
-
-
-
-
Subtotal
27,488,388
13,470
-
-
26,647,827
4,805,694
51,551,913
-
110,507,292
79

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements

NOTE 14 - FUND BALANCES (continued) 

General
Fund
Transient
Occupancy
Taxes Fund
Community
Development
Block Grant
Fund
Gas Tax
& Road
Fund
Capital
Outlay
Fund
Park
Improvement
Fund
Transportation
Development
Fund
Non-Major
Governmental
Funds
Total

Assigned
Legal & Professional services
142,870
-
-
-
-
-
-
-
142,870
Police operations
52,795
-
-
-
-
-
-
-
52,795
Fire operations
117,851
-
-
-
-
-
-
-
117,851
Public works - General
Services department
58,956
-
-
-
-
-
-
-
58,956
Facility improvements
-
-
-
-
4,436,223
-
-
-
4,436,223
Highway and road projects
-
-
-
-
23,532,556
-
-
-
23,532,556
Tourism and promotional contracts
-
989,359
-
-
-
-
-
-
989,359
Park development projects
41,467
-
-
-
-
-
-
-
41,467
Community development projects
28,526
-
-
-
-
-
-
-
28,526
Other miscellaneous agreements
17,499
-
-
-
-
-
-
-
17,499
Petty Cash accounts
28,370
-
-
-
-
-
-
-
28,370
Compensated absences
2,164,894
-
-
-
-
-
-
-
2,164,894
Appropriation for next year's budget
19,750,000
-
-
-
-
-
-
-
19,750,000
Subtotal
22,403,228
989,359
-
-
27,968,779
-
-
-
51,361,366
Unassigned
4,689,839
-
-
-
-
-
-
-
4,689,839
Total
$54,632,934
$1,002,829
$616,909
$12,902,757
$55,559,571
$4,805,694
$51,551,913
$5,456,081
$186,528,688
NOTE 15 - REIMBURSABLE DEVELOPER COSTS 
Reimbursable developer costs of $1,981,430 at June 30, 2019 are included in customer deposits in the Domestic Water Fund which represent amounts due to developers for construction of water mainline extensions and certain other water facilities. For mainline extensions transferred to the City after June 30, 1982, the developers are to be reimbursed based on revenues generated from the water sales associated with these mainline extensions.  The City is required to reimburse 2.5% of the cost of the extension on a yearly basis with the total amount to be reimbursed within 40 years.
80

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS 

General
The City of Bakersfield provides pension benefits to eligible full-time employees in three separate plans: the Miscellaneous Plan, the Safety Fire Plan, and the Safety Police Plan, all of which are included in the Public Agency portion of the California Public Employees’ Retirement System (CalPERS).  
Miscellaneous Plan
Plan Description
The City’s Miscellaneous Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments (COLA), and death benefits to plan members and beneficiaries.  The Miscellaneous Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California.  A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law.  The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance.  CalPERS issues a separate comprehensive annual financial report.  Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Miscellaneous Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Miscellaneous employee plan. Tier I is applicable to all employees hired before August 20, 2008 with a formula of 3% at age 60. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after August 20, 2008 and before January 1, 2013 with a formula of 2.7% at age 55. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of  2% at age 62, which is a result of the Public Employees' Pension Reform Act of 2013 (PEPRA). PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 52 with final compensation, subject to the PEPRA limit of $149,016, based on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the CalPERS Miscellaneous Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 8% of their salary while those employees under PEPRA (Tier III) will pay 5.5% of their salary.  In addition, employees in Tier I and Tier II have 7.5% of their contribution picked-up by the City after five years of service. 
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution. 
As of June 30, 2018 (the measurement date), there are 947 active employees and 913 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2019, the employee contribution rate was 7.588 percent of annual pay, and the employer’s minimum contribution rate was 26.346 percent of annual payroll. Employer contribution rates may change if plan contracts are amended. 
81

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 

Actuarial Methods and Assumptions
For the measurement period ended June 30, 2018 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions:




Actuarial Cost Method
Entry Age Normal

Asset Valuation Method
Fair Value of Assets. For details, see June 30, 2015 Funding Valuation Report

Inflation Rate
2.75%

Salary Increases
Varies by Entry Age and Service

Payroll Growth
3.00%

Investment Rate of Return
7.50% [a]

Mortality [b]
[a]  Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b] Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report.

All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study dated January 2014 which was derived from data collected for the period from 1997 to 2011, including updates to salary increases, mortality and retirement rates. The 2014 Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
82

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS' Board effective on July 1, 2015. 


Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10 [a]
Real Return
Years 11+ [b]

Global Equity
50.0%
4.80%
5.98%

Fixed Income
28.0%
1.00%
2.62%

Inflation Assets
0%
0.77%
1.81%

Private Equity
8.0%
6.30%
7.23%

Real Assets
13.0%
3.75%
4.93%

Liquidity
1.0%
0%
(0.92%)

[a] An expected inflation of 2.0% used for this period.
[b] An expected inflation of 2.92% used for this period.
 
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:


Increase (Decrease)

MISCELLANEOUS PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability/(Asset)
[3]=[1] - [2]

Balance at June 30, 2017 [a]
$552,882,942
$383,607,306
$169,275,636

Changes Recognized for the
 Measurement Period:

 - Service Cost
9,865,219
-
9,865,219

 - Interest on the Total
Pension Liability
38,377,062
-
38,377,062

 - Changes of Benefit Terms
-
-
-

 - Differences between Expected
and Actual Experience
(4,948,406)
-
(4,948,406)

 - Changes of Assumptions
(3,069,067)
-
(3,069,067)

 - Plan to Plan Movement
-
(939)
939

 - Contributions - Employer
-
13,222,781
(13,222,781)

 - Contributions - Employees
-
4,245,043
(4,245,043)

 - Net Investment Income
-
32,008,762
(32,008,762)

 - Benefit Payments Including
Refund of Employee Contributions
(26,111,942)
(26,111,942)
-

 - Administrative Expenses
-
(597,766)
597,766

 - Other Misc Income/(Expense) [b]
-
(1,135,167)
1,135,167

Net Changes during 2017-18
14,112,866
21,630,772
(7,517,906)

Balance at June 30, 2018 [a]
$566,995,808
$406,373,245
$160,622,563
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report.

[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, 
Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
 
83

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
Sensitivity of the Net Pension Liability to Changes in the Discount Rate

MISCELLANEOUS PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15 %)
Discount Rate + 1%
(8.15%)

Plan Net Pension 
Liability/(Asset)
$237,437,173
$161,757,730
$99,148,920
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2018 measurement date is 3.7 years, which is obtained by dividing the total service years of 10,005 (the sum of remaining lifetimes of active employees) by 2,685 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2018), the net pension liability/(asset) is $169,275,636. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense/(income) of $19,354,840 for the plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2019, the City had deferred outflows of resources related to pensions of $18,084,329 for contributions made subsequent to the measurement date, $13,333,762 for changes of assumptions, and $1,330,337 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $2,239,589 for changes in assumptions and  $7,583,774 for differences between expected and actual experiences.
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:


Measurement Periods
 Ended June 30:
Deferred Outflows/(Inflows)
of Resources

2019
$8,943,011

2020
$2,268,465

2021
$(5,368,575)

2022
$(1,002,165)

Remaining
$0
84

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
Safety Fire Plan
Plan Description
The City’s Safety Fire Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.  The Safety Fire Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California.  A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law.  The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance.  CalPERS issues a separate comprehensive annual financial report.  Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Safety Fire Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Safety Fire employee plan. Tier I is applicable to all employees hired before January 1, 2011 with a formula of 3% at age 50. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after January 1, 2011 and before  January 1, 2013 with a formula of 2.0% at age 50. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of  2% at age 57, which is a result of PEPRA. PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 50 with final compensation, subject to the PEPRA  limit of $149,016, based  on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the CalPERS Safety Fire Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 9% of their salary while those employees under PEPRA (Tier III) will pay 11% of their salary.  In addition, employees in Tier I have 8% of their contribution picked-up by the City after five years of service. 
Section 20814(c) of the California PERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution. 
As of June 30, 2018 (the measurement date), there are 171 active employees and 225 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2019, the employee contribution rate was 9.200 percent of annual pay, and the employer’s minimum contribution rate was 42.058 percent of annual payroll. Employer contribution rates may change if plan contracts are amended. 
85

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2018 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions: 
 




Actuarial Cost Method
Entry Age Normal

Asset Valuation Method
Fair Value of Assets. For details, see June 30, 2015 Funding Valuation Report.

Salary Increases
2.75%

Salary Increases
Varies by Entry Age and Service

Payroll Growth
3.00%

Investment Rate of Return
7.50%[a]

[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b]Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report
.
 
All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study dated January 2014 which was derived from data collected for the period from 1997 to 2011, including updates to salary increases, mortality and retirement rates. The 2014 Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
86

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2015.
 

Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10 [a]
Real Return
Years 11+ [b]

Global Equity
50.0%
4.80%
5.98%

Fixed Income
28.0%
1.00%
2.62%

Inflation Assets
0%
0.77%
1.81%

Private Equity
8.0%
6.30%
7.23%

Real Assets
13.0%
3.75%
4.93%

Liquidity
1.0%
0%
(0.92%)

[a] An expected inflation of 2.00% used for this period.
[b] An expected inflation of 2.92% used for this period.
 
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:
 


Increase (Decrease)

SAFETY FIRE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability/(Asset)
[3]=[1] - [2]

Balance at June 30, 2017 [a]
$284,221,668
$200,055,512
$84,166,156

Changes Recognized for the
Measurement Period:

 - Service Cost
4,690,651
-
4,690,651

 - Interest on the Total
Pension Liability
19,788,059
-
19,788,059

 - Changes of Benefit Terms
-
-
-

 - Differences between Expected
and Actual Experience
(1,205,127)
-
(1,205,127)

 - Changes of Assumptions
(1,346,780)
-
(1,346,780)

 - Plan to Plan Resource Movement
-
(487)
487

 - Contributions - Employer
-
6,452,089
(6,452,089)

 - Contributions - Employees
-
1,612,168
(1,612,168)

 - Net Investment Income
-
16,662,233
(16,662,233)

 - Benefit Payments Including
Refund of Employee Contributions
(14,518,038)
(14,518,038)
-

 - Administrative Expenses
-
(311,742)
311,742

 - Other Misc Income/(Expense) [b]
-
(592,003)
592,003

Net Changes during 2017-18
7,408,765
9,304,220
(1,895,455)

Balance at June 30, 2018 [a]
$291,630,433
$209,359,732
$82,270,701
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report

[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, 
Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
 
87

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

SAFETY FIRE  PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate + 1%
(8.15%)

Plan Net Pension 
Liability/(Asset)
$121,546,441
$82,270,701
$49,973,302
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2018 measurement date is 5.6 years, which is obtained by dividing the total service years of 2,414 (the sum of remaining lifetimes of active employees) by 432 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2018), the net pension liability/(asset) is $84,166,156. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense/(income) of $10,302,023 for the plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2019, the City had deferred outflows of resources related to pensions of $8,410,816 for contributions made subsequent to the measurement date, $10,138,817 for changes of assumptions, $425,206 for the differences between expected and actual experiences and $882,935 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $2,252,034 for changes in assumptions and $3,155,918 for differences between expected and actual experiences. 
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:


Measurement Periods
 Ended June 30:
Deferred Outflows/(Inflows)
of Resources

2019
$3,916,114

2020
$2,403,526

2021
$25,003

2022
$(32,215)

2023
$(273,422)
88

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 

Remaining
$0
89

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
Safety Police Plan
Plan Description
The City’s Safety Police Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.  The Safety Police Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California.  A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law.  The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance.  CalPERS issues a separate comprehensive annual financial report.  Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Safety Police Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Safety Police employee plan. Tier I is applicable to all employees hired before January 1, 2011 with a formula of 3% at age 50. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after January 1, 2011 and before January 1, 2013 with a formula of 2.0% at age 50. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of  2% at age 57, which is a result of the PEPRA. PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 50 with final compensation, subject to the PEPRA  limit of $149,016, based  on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the  CalPERS Safety Police Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 9% of their salary while those employees under PEPRA (Tier III) will pay 12.50% of their salary.  In addition, employees in Tier I have 8% their contribution picked-up by the City  after five years of service. 
Section 20814(c) of the California PERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 
As of June 30, 2018 (the measurement date), there are 373 active employees and 432 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2019, the employee contribution rate was 9.671 percent of annual pay, and the employer’s minimum contribution rate was 46.810 percent of annual payroll. Employer contribution rates may change if plan contracts are amended. 
90

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 

Actuarial Methods and  Assumptions
For the measurement period ended June 30, 2018 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions: 




Actuarial Cost Method
Entry Age Normal 

Asset Valuation Method
Fair Value of Assets. For details, see June 30, 2015 Funding Valuation Report

Inflation Rate
2.75%

Salary Increases
Varies by Entry Age and Services

Payroll Growth
3.00%

Investment Rate of Return
7.50%[a]

Mortality[b]
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b] Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report
.
 
All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study dated January 2014 which was derived from data collected for the period from 1997 to 2011, including updates to salary increases, mortality and retirement rates. The 2014 Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
91

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2015.
 

Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10 [a]
Real Return
Years 11+ [b]

Global Equity
50.0%
4.80%
5.98%

Fixed Income
28.0%
1.00%
2.62%

Inflation Assets
0%
0.77%
1.81%

Private Equity
8.0%
6.30%
7.23%

Real Assets
13.0%
3.75%
4.93%

Liquidity
1.0%
0%
(0.92%)

[a] An expected inflation of 2.00% used for this period.
[b] An expected inflation of 2.92% used for this period.
  
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:


Increase (Decrease)

SAFETY POLICE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability/(Asset)
[3]=[1] - [2]

Balance at June 30, 2017 [a]
$484,820,257
$300,752,643
$184,067,614

Changes Recognized for the
Measurement Period:

 - Service Cost
10,220,547
-
10,220,547

 - Interest on the Total
Pension Liability
34,128,110
-
34,128,110

 - Changes of Benefit Terms
-
-
-

 - Differences between Expected
and Actual Experience
1,792,996
-
1,792,996

- Changes in Assumptions
(2,726,217)
-
(2,726,217)

- Plan to Plan Resource Movement
-
(740)
740

- Contributions - Employer
-
15,159,139
(15,159,139)

- Contributions -Employees
-
3,650,956
(3,650,956)

- Net Investment Income
-
25,183,248
(25,183,248)

- Benefit Payments Including
Refunds of Employee Contributions
(23,362,241)
(23,362,241)
-

- Administrative Expenses
-
(468,655)
468,655

- Other Misc Income/(Expense) [b]
-
(889,985)
889,985

Net Changes during 2017-18
20,053,195
19,271,722
781,473

Balance at June 30, 2018 [a]
$504,873,452
$320,024,365
$184,849,087
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report.

[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, 
Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75
 
92

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
Sensitivity of the Net Pension Liability to Changes in the Discount Rate

SAFETY POLICE PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15 %)
Discount Rate + 1%
(8.15%)

Plan Net Pension
Liability/(Asset)
$258,387,155
$184,849,087
$125,209,941
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2018 measurement date is 5.4 years, which is obtained by dividing the total service years of 4,910 (the sum of remaining lifetimes of active employees) by 907 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2018), the net pension liability/(asset) is $184,067,614. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense/(income) of $23,640,709 for the plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2019, the City had deferred outflows of resources related to pensions of $18,902,246 for contributions made subsequent to the measurement date, $18,750,746 for changes of assumptions, $3,696,138 for differences between expected and actual experiences and $846,211 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were  $4,124,998 for changes in assumptions and $2,326,656 for differences between expected and actual experiences. 
93

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued) 
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:


Measurement Periods
 Ended June 30:
Deferred Outflows/(Inflows)
of Resources

2019
$7,565,079

2020
$5,541,883

2021
$2,024,246

2022
$1,779,360

2023
$(69,126)

Remaining
$0


CITYWIDE PENSION PLAN TOTALS
Miscellaneous Plan
Safety Fire Plan
Safety Police Plan
Citywide
Total

Net Pension Liability
$160,622,563
$82,270,701
$184,849,087
$427,742,351

Deferred Outflows of Resources

Contributions Made Subsequent to Measurement Date
18,084,329
8,410,816
18,902,246
45,397,391

Differences Between Expected and 
Actual Experiences
-
425,206
3,696,138
4,121,344

Differences Between Projected and
Actual Earnings
1,330,337
882,935
846,211
3,059,483

Changes of Assumptions
13,333,762
10,138,817
18,750,746
42,223,325

Total Deferred Outflows of Resources
$32,748,428
$19,857,774
$42,195,341
$94,801,543

Deferred Inflows of Resources

Differences Between Expected and
Actual Experience
$7,583,774
$3,155,918
-
$10,739,692

Differences Between Projected and
Actual Earnings
-
-
2,326,656
2,326,656

Changes of Assumptions
2,239,589
2,252,034
4,124,998
8,616,621

Total Deferred Inflows of Resources
$9,823,363
$5,407,952
$6,451,654
$21,682,969
94

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) 
Single Employer OPEB  
Plan description: In addition to the employee retirement benefits described in Note 16, the City provides a single-employer Post-Employment Retiree Medical Benefit Plan in accordance with a resolution approved by City Council.  Two primary plans exist.  All employees with a retirement date prior to January 1, 1985 were eligible for benefits upon retirement.  Post-1985 employees must retire with fifteen years accumulated service upon retirement to participate.  The service requirement is waived for safety employees who retire with a job-related disability.
Employees hired after the dates listed below will not participate in either of the retiree health subsidy programs mentioned:



Miscellaneous Employees
February 22, 2006

Management and Supervisory
March 22, 2006

Fire Safety
May 5, 2006

Police Safety
May 24, 2006
Benefits provided: For employees hired prior to the dates listed above, the City provides lifetime postretirement medical benefits for eligible retirees and qualified dependents with a choice of three medical options:  Blue Shield PPO, Kaiser High Deductible Health Plan, and Kaiser Permanente HMO.  Mental Health benefits are carved out and provided through Optum Behavioral Health.  After reaching eligibility for Medicare, retirees are offered a choice of Blue Shield PPO, Blue Shield Medicare Advantage HMO or Kaiser Senior Advantage HMO.  Retirees may also elect dental coverage but must self-pay the premiums for such coverage.  Vision coverage is not offered to retirees.  Retiree rates are unblended from employee rates. 
Employees covered by benefit terms: At June 30,  2019 the following employees were covered by the benefit terms:


Inactive employees or beneficiaries currently receiving benefit payments
757

Active employees
513

 
1,270
Contributions. The City contributes 3% of the lowest single-party rate per year of service to a maximum of 90%.  If the dollar amount is greater than the premium for a retiree covered under one of the Medicare Advantage plans, the retiree receives a cash reimbursement of the difference to a maximum of $42.50 per month.  The City also contributes 42% of the Blue Shield PPO for all retirees who elect the Blue Shield PPO plan, excluding Miscellaneous employees hired after April 1, 1996 and Safety employees hired after April 1, 1998.  The City has approximately 513 active employees who are eligible for the same level of post-employment benefits and 757 retirees (and/or dependents) currently receiving benefits as of the actuarial dated June 30, 2019.  There is not a separate, audited GAAP-basis pension report available for the Post-Employment Retiree Medical Benefit Plan.
95

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued) 
Net OPEB Liability  
The City's net OPEB liability was measured as of June 30, 2018, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.
Actuarial assumptions. The total OPEB liability as of June 30, 2018 was determined by an actuarial valuations as of June 30, 2018.  The actuarial assumptions used in the June 30, 2018 valuation were based on the December 2017 experience study performed by the CalPERS actuary derived from the data collected during fiscal years 1997 to 2015. 


Data
Detailed census data, premium data and/or claim experience, and summary plan descriptions for OPEB are provided by the City of Bakersfield

Actuarial Cost Method
Entry Age Normal, Level percent of pay

Asset Valuation Method
Market Value

Measurement Date
June 30, 2018

Census Date
July 1, 2019

Discount Rate
5.00%

Inflatioin Rate
2.50%

Payroll Growth
2.75%

Salary Increases
Wage inflation rate (2.75%) plus merit and promotional increases of between 3.44% to 13.02% based on years of service
The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, and by adding expected inflation and subtracting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return, after deducting inflation, but before deducting investment expenses, used in the derivation of the long-term expected rate of return assumption are summarized in the following table: 

Asset Class
Target Allocation
Long-Term (Arithmetic) Expected Real Rate of Return

Domestic Equity
24.34%
6.40%

Developed International Equity
4.26
7.40

Emerging Markets Equity
2.01
9.80

Core Fixed Income
65.25
1.75

Real Estate
0.83
5.10

Short Term Money Market
3.31
1.10

Total 
100%
Discount rate. The discount rate used to measure the total OPEB liability was 5.00% as of June 30, 2018 and 5.00% as of June 30, 2017. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at the rates equal to the actuarially determined contribution rates. For this purpose, only City contributions that are intended to fund benefits of current plan members and their beneficiaries are included. Projected City contributions that are intended to fund the service costs of future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the OPEB Plan's assets were projected to be sufficient to make all projected OPEB payments for current plan members.
96

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued) 
Net OPEB Liability (continued)  
Therefore, the long-term expected rate of return on OPEB Plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability as of both June 30, 2018 and June 30, 2017
Changes in the Net OPEB Liability


Increase (Decrease)


Total OPEB Liability
Plan Fiduciary Net Position
Net OPEB Liability


(a)
(b)
(a) - (b)

Beginning balances
$140,014,779
$61,606,436
$78,408,343

Changes for the year: 

Service cost
1,975,894
-
1,975,894

Interest
6,986,837
-
6,986,837

Differences between expected and actual experience
(762,025)
-
(762,025)

Employer contributions
-
7,527,447
(7,527,447)

Net investment income
-
2,017,934
(2,017,934)

Benefit payments
(4,507,862)
(4,507,862)
-

Administrative expense
-
(188,705)
188,705

Net changes 
3,692,844
4,848,814
(1,155,970)

Ending balance 
$143,707,623
$66,455,250
$77,252,373
Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB liability of the City as of June 30, 2018, calculated using the discount rate of 5.00%, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.0 percent) or 1-percentage point higher (6.0 percent) than the current discount rate: 


1% Decrease (4.0%)
Discount Rate (5.0%)
1% Increase (6.0%)

Net OPEB liability (asset) as of June 30, 2018
$100,677,637
$77,252,373
$58,533,255
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB liability of the City as of June 30, 2018, calculated using the current healthcare cost trend rates as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: 


1% Decrease*
Healthcare Cost Trend Rates*
1% Increase*

Net OPEB liability (asset) as of June 30, 2018
$57,920,948
$77,252,373
$101,472,765
*Current trend rates:  7.00% graded to 4.50% over 10 year for City "Years of Service" Formula subsidy, 7.00% graded to 4.50% over 10 years for Special 42% Contribution Non-Medicare subsidy, and 6.50% graded to 4.50% over 8 years for Special 42% Contribution Medicare subsidy.
OPEB Plan fiduciary net position. Detailed information about the OPEB Plan's fiduciary net position is available in the separately issued actuarial report. 
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2018, the City recognized OPEB expense of $3,624,339. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 
97

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued) 



Governmental Activities
Business-type Activities


Deferred Outflows of Resources
Deferred Inflows of Resources
Deferred Outflows of Resources
Deferred Inflows of Resources

Changes of assumptions
$-
$2,621,925
$-
$454,757

Net difference between projected and actual earnings on OPEB Plan investments
-
3,465,635
-
601,093

Net excess of projected over actual earnings on OPEB Plan investments
733,028
-
127,139
-

City contributions subsequent to the measurement date
6,766,457
-
1,173,599
-

Total 
$7,499,485
$6,087,560
$1,300,738
$1,055,850

The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB are recognized in OPEB expenses as follows:

Fiscal Year Ended:
Governmental Activities Amount
Business-type Activities Amount

2020
$(2,024,812)
$(351,191)

2021
(2,024,812)
(351,191)

2022
(1,471,569)
(255,235)

2023
166,661
28,906

Thereafter
$-
$-
98

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 18 -SPECIAL ASSESSMENT DISTRICTS 
In addition to the Long-Term Obligations discussed in Note 11, the following Long-Term Obligations have been issued in the name of Special Assessment Districts or Agencies of the City.  Neither the City, nor its Agencies, are obligated in any manner for the repayment of these obligations.  The City acts as an agent to property owners for the collection and repayment of Special Assessment Debt.




Outstanding at June 30, 2019

Assessment District 99-1*
(Polo Greens/River Oaks)
$235,000

Assessment District 99-2*
(Seven Oaks West)
440,000

Assessment District 01-1*
(Ming at Allen/Mountain Vista; Hampton Place)
410,000

Assessment District 01-2*
(Seven Oaks West II/Riverwalk/Southern Oaks)
1,425,000

Assessment District 01-3*
(Mountain Vista/San Lauren)
995,000

Assessment District 02-1*
(Avalon/Belsera/Montara/The Woods)
460,000

Assessment District 03-1*
(Brighton Place/Silver Creek II)
860,000

Assessment District 03-2*
(Buena Vista Ranch/Belsera II/Monstera II/Olive Park II)
710,000

Assessment District 03-3*
(Seven Oaks West III/Brighton Place)
1,915,000

Assessment District 04-1**
(Countryside/The Homestead)
1,355,000

Assessment District 04-2**
(BL/BV/ST@Allen Com)
1,595,000

Assessment District 04-3**
(Solera/Rio Vista)
1,090,000

Assessment District 05-1
(City in the Hills)
6,710,000

Assessment District 05-3**
(Liberty II/Village Green/Tesoro/Encanto)
3,130,000

Assessment District 06-1**
(Etcheverry/Lin II/University Park)
2,600,000

Assessment District 07-2
(Sydney Harbour)
1,265,000

$25,195,000

*Note: These ten districts were refinanced into a consolidated district (12-01) with the California Statewide Communities Development Authority (CSCDA). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
*Note: These ten districts were refinanced into a consolidated district (12-01) with the California Statewide Communities Development Authority (CSCDA). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.

**Note: These five districts were refinanced into a consolidated district (15-01). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
**Note: These five districts were refinanced into a consolidated district (15-01). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
99

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT 
Self-Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City established a Self-Insurance Fund (an internal service fund) to account for and finance its uninsured risks of loss.  Under this program, the Self-Insurance Fund provides coverage for up to $500,000 for each workers’ compensation claim and $1,000,000 for each liability claim.  The City participates in a joint powers authority for workers’ compensation claims in excess of coverage provided by the fund up to statutory limits and participates in a joint powers authority for any excess liability claims. All funds of the City participate in the program and are charged for their share of claim expenditures.  The claims liability of $48,527,301 at June 30, 2019 is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.  An estimate of incurred but not reported claims has been included in the liability based on the various percentages of loss reserves.   
Changes in the fund's claims liability over the last three fiscal years is shown below:
 


Liability
at Beginning
of Year
Current Year
Claims and
Changes in
Estimates
Claims
Payments
Liability
at End
of Year

2016-2017
$39,491,534
$15,750,392
$10,617,534
$44,624,392

2017-2018
44,624,392
14,674,483
11,734,224
47,564,651

2018-2019
47,564,651
14,538,671
13,576,021
48,527,301

Joint Powers Authority
The City has obtained excess liability coverage through the Authority for California Cities Excess Liability (ACCEL), a joint powers authority of medium-size California municipalities.  ACCEL pools catastrophic general liability, automobile liability and public officials' errors and omissions losses, or purchases excess insurance, depending on market conditions.  Each member's share of pooled costs will depend on the catastrophic losses of all the members.  In addition, the cost to a member city will also depend on that member's own loss experience.  Entities with a consistent record of costly claims will pay more than entities with a consistent record of less serious claims activity.
In order to provide funds to pay claims, or purchase excess insurance, ACCEL collects a deposit from each member.  The deposits will be credited with investment income at the rate earned on ACCEL's investments.  Based on information received from ACCEL as of June 30, 2019, the City had $617,875 on deposit with ACCEL out of a total of approximately $7,945,076.
The following municipalities are also members of ACCEL:  Palo Alto, Santa Barbara, Visalia, Modesto, Ontario, Santa Monica, Anaheim, Santa Cruz, Mountain View, Burbank, Monterey, and Gardena.  A representative from each member city, appointed to the position by their respective city councils, serves on the Board of Directors (Board) of ACCEL.  The Board is responsible for deciding the risks ACCEL will underwrite, monitoring the costs of large claims and arranging financial programs.  Each member of the Board has an equal vote in matters concerning ACCEL.
As of June 30, 2019, ACCEL had no long-term debt. Included in total liabilities is an estimated retrospectively rated refund of $11,019,607.  Complete financial statements of ACCEL can be obtained at the City’s Finance Department at 1600 Truxtun Avenue, Bakersfield, CA 93301.
100

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT (continued) 
A summary of the financial information for ACCEL at June 30, 2019 is as follows:




Total assets
$47,057,137

Total liabilities
45,283,284


Total members' net position
$1,773,853


Total revenues
$19,844,921

Total expenses
22,361,616


Net change in members' net position
$(2,516,695)

NOTE 20 - COMMITMENTS AND CONTINGENCIES 
Several claims and suits have been filed against the City in the normal course of business.  In the opinion of management and the City Attorney, the potential liability of the City for such claims will not have a material adverse effect on the financial statements of the City.  Also, the City has certain commitments under long-term construction projects which will be funded out of future revenues.
The entire capacity of the former sanitary landfill has been used.  The State has required environmental closure and capping of the City's former sanitary landfill and remediation of the adjacent burn dump.  Although these two waste disposal areas are adjacent to each other, the City completed the remediation of the burn dump separately, through the State's Expedited Remedial Action Program, in 1998.  The cost of remediation for the burn dump of $1.8 million was funded by the City's Refuse Service Fund and was expensed in prior fiscal years.  The landfill closure was completed in May 2013 at a cost of $4.8 million.  The City’s net share of this joint City/County project was approximately $3 million.  Kern County reimbursed the City for the remaining $1.8 million.
The City will be required to perform post-closure monitoring and maintenance of the landfill after it is closed and capped.  This will result in an ongoing annual cost of approximately $150,000.  The City will be responsible for about $125,000 of these annual charges because most of these costs will be for the landfill gas management system, which is the City's responsibility.  Kern County will be responsible for reimbursing the City for the remainder.  City management anticipates all closure and post-closure costs being covered by annual Refuse Service Fund revenues.  These estimates of cost are subject to future adjustment for inflation or deflation, technology, or applicable laws or regulations.

101

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 21 - ENCUMBRANCES 
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded as encumbrances in order to reserve that portion of the applicable appropriation. Encumbrances outstanding as of June 30, 2019 consisted of the following:




Governmental Funds:

Major Funds:

General Fund
$1,484,748

Transient Occupancy Taxes Fund
13,470

Community Development Block Grant Fund
1,939,697

Gas Tax & Road Fund
104,538,142

Capital Outlay Fund
23,041,063

Park Improvement Fund
98,461

Transportation Development Fund
26,302,779

Non-Major Funds:

State (TDA) Transportation Fund
19,538

State Safety Fund
141,516

Proprietary Funds:

Major Funds:

Wastewater Treatment Fund
2,679,711

Refuse Collection Fund
244

River & Agriculture Water Fund
424,538

Domestic Water Fund
2,146,327

General Aviation Fund
11,100

Offstreet Parking Fund
96,886

Internal Service Funds:

Self-Insurance Fund
540,153

Equipment Management Fund
9,296,944

$172,775,318

102

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 22 - CONDUIT DEBT OBLIGATIONS 
The City has been associated with the issuance of various health care, residential care, mortgage, commercial and industrial development debt issues.  These debt obligations were issued under provisions of State and Federal laws that explicitly state that they do not constitute any indebtedness of the City.  The City’s sole involvement with these bonds was their issuance under the City’s name or the City Council’s authorization.  As such, the following conduit debt obligations are not reflected in the accompanying basic financial statements:


Authorized and
Issued

City of Bakersfield - Cottonwood Village Housing Bond,

Series 2004
$5,000,000

City of Bakersfield - Cottonwood Court Housing Bond,

Series 2004
1,950,000

City of Bakersfield - St. John Manor Housing Bond,

Series 2006
3,867,794

City of Bakersfield - Coventry Apartments Housing Bond,

Series 2007M
5,300,000

City of Bakersfield - Catholic Healthcare West 501(c)(3)

Nonprofit Bond, Series A thru L
676,250,000

City of Bakersfield - Descanso Place Housing Bond, 

Series TT
13,000,000

City of Bakersfield -  Bakersfield Family Apartments Housing

Bond, Series 2008R
10,971,000

City of Bakersfield - Camellia Place Housing Bond, 

Series 2009R
619,138

City of Bakersfield - Eucalyptus Village I Housing Bond,

Series 2012-E1
1,295,000

City of Bakersfield - Eucalyptus Village II Housing Bond,

Series 2012-E2
4,275,000

City of Bakersfield - American Baptist Homes of The West

501(c)(3) Nonprofit Bond, Series 2015
52,080,000


TOTAL

103

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 22 - CONDUIT DEBT OBLIGATIONS (continued) 


Current Outstanding at
June 30, 2019

City of Bakersfield - Cottonwood Village Housing Bond,

Series 2004
$5,000,000

City of Bakersfield - Cottonwood Court Housing Bond,

Series 2004
1,950,000

City of Bakersfield - St. John Manor Housing Bond,

Series 2006
2,623,975

City of Bakersfield - Coventry Apartments Housing Bond,

Series 2007M
3,457,393

City of Bakersfield - Catholic Healthcare West 501(c)(3)

Nonprofit Bond, Series A thru L
240,000,000

City of Bakersfield - Descanso Place Housing Bond, 

Series TT
1,400,000

City of Bakersfield -  Bakersfield Family Apartments Housing

Bond, Series 2008R
1,074,615

City of Bakersfield - Camellia Place Housing Bond, 

Series 2009R
619,118

City of Bakersfield - Eucalyptus Village I Housing Bond,

Series 2012-E1
1,295,000

City of Bakersfield - Eucalyptus Village II Housing Bond,

Series 2012-E2
4,275,000

City of Bakersfield - American Baptist Homes of The West

501(c)(3) Nonprofit Bond, Series 2015
52,080,000


TOTAL
$313,775,101

104

CITY OF BAKER - CAFR2019 - Xbrl
Notes to the Financial Statements
NOTE 23 - PRIOR PERIOD ADJUSTMENTS 
During the fiscal year ended June 30, 2019, the City made the following prior period adjustments to restate the net position  for governmental activities and business-type activities and related fund balance for: 1) Net Position for Governmental and Business-Type Activities were adjusted to correct interest revenues allocated erroneously in the prior year and also was adjusted after review of capital assets by City departments, 2) Correction of Fund Balance in the General Fund, Park Improvement Fund, and the Transportation Development Fund for the interest revenue adjustment that was made, 3) to adjust prior year expenses in the Transportation Development Fund for expenses that were found to no longer be eligible for federal funding, and 4) Correction of fund balance in the Equipment Fund to adjust assets that were not properly recorded.  See corresponding changes in statements on p. 22, p.30, p.31, p.36, p.37, and p. 134.  


Net Position Accounts

Activity
July 1, 2018
as previously
reported
Adjustment
July 1, 2018,
as
restated


Net Position - Governmental Activities
$1,121,379,867
$(1,791,835)
$1,119,588,032

Net Position - Business-Type Activities

Wastewater Treatment Fund
$524,241,291
$139,173
$524,380,464

Refuse Collection Fund
$1,012,997
$33,581
$1,046,578

River & Agricultural Water Fund
$24,052,555
$17,963
$24,070,518

Domestic Water Fund
$264,955,976
$116,356
$265,072,332

Equipment Fund
$59,580,282
$171,425
$59,751,707

Self-Insurance Fund
$(20,941,992)
$46,356
$(20,895,636)



Fund Balance Accounts


July 1, 2018
as previously
reported
Adjustment
July 1, 2018,
as
restated


General  Fund
$39,498,488
$(477,387)
$39,021,101

Park Improvement Fund
$5,282,611
$14,769
$5,297,380

Transportation Development Fund
$52,357,613
$(1,546,998)
$50,810,615

105

CITY OF BAKERSFIELD
Required Supplementary Information
BUDGETARY INFORMATION 
Through the budget process, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective use of the City's economic resources, as well as establishing that the highest priority objectives are accomplished. Budgets are adopted for all governmental fund types and are prepared on a basis consistent with accounting principles generally accepted in the United States of America.
The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance.
The City's budget is prepared and based on four expenditure categories: personnel, supplies and services, minor capital outlay and capital improvement programs. The first three listed are considered operational in nature and known as recurring costs. Capital improvement projects are asset acquisitions, facilities systems, and infrastructure improvements typically over $50,000, and/or those items "outside" of the normal operational budget. These are known as one-time costs.
The City collects and records revenue and expenditures within the following categories:
Governmental Activities
Business-Type Activities
The Governmental Funds include the General Fund, Special Revenue, Debt Service and Capital Projects funds. All funding sources are kept separate for both reporting and use of the money. The General Fund is where most City services are funded that are not required to be segregated.
The budget process begins as a team effort in January of each year, starting with an annual strategic planning meeting. Then the individual departments use projected revenue assumptions to prioritize and recommend the next fiscal year's objectives. The City Manager's Office and the Finance Department review all budget proposals and revenues assumptions, as well as all current financial obligations before preparing the document that is proposed to the City Council. The City Council reviews the Proposed Budget through a series of workshops, and the final adoption of the budget is normally scheduled for the second City Council meeting each June.
At the beginning of each fiscal year, certain appropriations are "carried forward" from the prior budget year. These items generally relate to either open encumbrances that exist at June 30, or capital projects that were budgeted in the prior fiscal year that did not progress to the encumbrance stage as of June 30. The City Manager's Office approves all carryovers that are not encumbered as of June 30 of each year.
The amounts carried forward from fiscal year ended June 30, 2018 to fiscal year ended June 30, 2019 totaled $314,050,835.
106

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued) 

These following schedules represent budgetary comparisons for the General Fund and all major special revenue funds within the City.
Budgetary Comparison Schedule, General Fund
For the Fiscal Year Ended June 30, 2019


Budgeted Amounts
Actual
Variance with


Original
Final
Amounts
Final Budget

Fund Balance, July 1
$39,021,101
$39,021,101
$39,021,101
$-

Revenues:

Taxes
161,414,600
178,903,100
189,012,448
10,109,348

Licenses and permits
2,908,595
2,908,595
3,172,269
263,674

Intergovernmental
1,662,582
6,633,413
4,702,162
(1,931,251)

Charges for services
23,873,786
24,198,286
24,949,296
751,010

Fines, forfeitures and assessments
731,000
731,000
911,966
180,966

Interest income
327,500
327,500
1,413,557
1,086,057

Contributions and donations
45,000
111,510
123,155
11,645

Other
974,937
974,937
1,448,179
473,242

Transfers from other funds
1,200,000
1,200,000
1,200,000
-

Amount available for appropriation
$193,138,000
$215,988,341
$226,933,032
$10,944,691

Expenditures:


General government
$13,731,703
$13,871,705
$12,750,089
$1,121,616

Public safety - Police
92,277,374
95,657,897
95,677,601
(19,704)

Public safety - Fire
39,428,963
40,868,398
39,033,631
1,834,767

Public works
23,349,847
24,367,343
22,867,605
1,499,738

Recreation and parks
20,727,579
20,810,286
20,336,011
474,275

Development services
7,714,423
9,475,638
7,701,370
1,774,268

Non-departmental
11,230,522
10,558,854
9,220,222
1,338,632

Contingency
25,000
24,400
-
24,400

Transfers to other funds
810,589
3,734,670
3,734,670
-

Total charges to appropriations
209,296,000
219,369,191
211,321,199
8,047,992

Amount of resources over (under)
charges to appropriations
(16,158,000)
(3,380,850)
15,611,833
18,992,683

Fund balance, June 30
$22,863,101
$35,640,251
$54,632,934
$18,992,683

107

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued) 
Budgetary Comparison Schedule, Transient Occupancy Taxes Fund
For the Fiscal Year Ended June 30, 2019


Budgeted Amounts
Actual
Variance with


Original
Final
Amounts
Final Budget

Fund Balance, July 1 - as restated
$1,862,655
$1,862,655
$1,862,655
$-

Revenues:

Taxes
9,700,000
9,700,000
9,943,109
243,109

Charges for services
9,383,558
9,383,558
8,700,059
(683,499)

Interest income
30,000
30,000
117,291
87,291

Contributions and donations
1,200,000
1,200,000
1,200,000
-

Amount available for appropriation
$20,313,558
$20,313,558
$19,960,459
$(353,099)

Expenditures:

General government
$10,655,080
$10,777,540
$9,891,488
$886,052

Non-departmental
3,136,900
3,136,900
3,136,900
-

Transfers to other funds
7,782,543
7,782,543
7,791,897
(9,354)

Total charges to appropriations
21,574,523
21,696,983
20,820,285
876,698

Amount of resources over (under)
charges to appropriations
(1,260,965)
(1,383,425)
(859,826)
523,599

Fund balance, June 30
$601,690
$479,230
$1,002,829
$523,599

Budgetary Comparison Schedule, Community Development Block Grant Fund
For the Fiscal Year Ended June 30, 2019


Budgeted Amounts
Actual
Variance with


Original
Final
Amounts
Final Budget

Fund Balance, July 1
$529,095
$529,095
$529,095
$-

Revenues:

Intergovernmental
4,888,600
11,879,294
3,300,238
(8,579,056)

Interest income
-
-
1,073
1,073

Loan payments
175,868
175,868
326,479
150,611

Other income
-
-
8,751
8,751

Amount available for appropriation
$5,064,468
$12,055,162
$3,636,541
$(8,418,621)

Expenditures:

Community development
$3,071,176
$8,185,922
$2,407,215
$5,778,707

Capital outlay
1,506,955
3,440,607
633,967
2,806,640

Transfers to other funds
507,546
507,546
507,545
1

Total charges to appropriations
5,085,677
12,134,075
3,548,727
8,585,348

Amount of resources over (under)
charges to appropriations
(21,209)
(78,913)
87,814
166,727

Fund balance, June 30
$507,886
$450,182
$616,909
$166,727
108

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued) 
Budgetary Comparison Schedule, Gas Tax & Road Fund
For the Fiscal Year Ended June 30, 2019


Budgeted Amounts
Actual
Variance with


Original
Final
Amounts
Final Budget

Fund Balance, July 1 
$15,187,842
$15,187,842
$15,187,842
$-

Revenues:

Intergovernmental
194,623,552
348,813,998
77,576,105
(271,237,893)

Fines, forfeitures and assessments
15,000
15,000
56,499
41,499

Interest income
125,000
130,000
370,085
240,085

Other income
-
-
199
199

Amount available for appropriation
$194,763,552
$348,958,998
$78,002,888
$(270,956,110)

Expenditures:

Public works
$3,272,463
$3,272,463
$3,266,451
$6,012

Capital outlay
167,926,130
360,885,208
77,021,522
283,863,686

Total charges to appropriations
171,198,593
364,157,671
80,287,973
283,869,698

Amount of resources over (under)
charges to appropriations
23,564,959
(15,198,673)
(2,285,085)
12,913,588

Fund balance, June 30
$38,752,801
$(10,831)
$12,902,757
$12,913,588
109

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN 
The Schedules of Changes in Net Pension Liability and Related Ratios as of  the Measurement Period ending June 30, 2018 are below:
MISCELLANEOUS PLAN [a][e]





Measurement Period
2018
2017
2016
2015
2014
Total Pension Liability
Service Costs
$9,865,219
$10,121,201
$9,229,271
$9,371,317
$9,394,857
Interest on Total Pension Liability
38,377,061
37,355,571
36,457,017
34,880,633
33,174,032
Changes of Benefit Terms
-
-
-
-
-
Changes in Assumptions
(3,069,067)
31,112,110
-
(8,541,600)
-
Difference Between Expected and Actual Experience
(4,948,406)
(8,386,592)
(2,271,125)
(682,929)
-
Benefit Payments [b]
(26,111,942)
(23,977,515)
(21,951,615)
(20,655,868)
(18,737,652)
Net Change in Total Pension Liability
$14,112,865
$46,224,775
$21,463,548
$14,371,553
$23,831,237
Total Pension Liability - Beginning
552,882,942
506,658,167
485,194,619
470,823,046
446,991,809
Total Pension Liability - Ending [1]
$566,995,807
$552,882,942
$506,658,167
$485,194,599
470,823,046
Plan Fiduciary Net Position
Contributions - Employer
$13,222,781
$11,107,872
$10,734,470
$10,017,697
$9,220,181
Contributions - Employee
4,245,043
4,188,806
4,400,305
4,653,169
4,566,671
Net Investment Income
32,008,762
39,138,504
1,891,631
7,966,951
53,513,763
Other Miscellaneous Income
-
-
-
-
-
Benefit Payments [b]
(26,111,942)
(23,977,515)
(21,951,615)
(20,655,868)
(18,737,652)
Plan to Plan Resource Movement
(939)
-
(40,308)
-
-
Administrative Expense
(597,766)
(522,173)
(218,704)
(403,815)
-
Other Misc Income/(Expense)
(1,135,167)
-
-
-
-
Net Change in Plan Fiduciary Net Position
$21,630,772
$29,935,494
$(5,184,221)
$1,578,134
$48,562,963
Plan Fiduciary Net Position - Beginning
$383,607,306
$353,671,812
$358,856,033
$357,277,899
$308,714,936
Plan Fiduciary Net Position - Ending [2]
405,238,078
383,607,306
353,671,812
358,856,033
357,277,899
Plan Net Pension Liability / (Asset) - [1]-[2]
$161,757,729
$169,275,636
$152,986,355
$126,338,566
$113,545,147
Plan Fiduciary Net Position as a Percentage 
of Covered Employee Payroll
71.47%
69.38%
69.80%
73.96%
75.88%
Covered  Employee Payroll
$55,301,410
$56,388,660
$56,837,487
$57,065,633
$53,054,308
Plan Net Pension Liability / (Asset) as a Percentage 
of Covered Employee Payroll
292.50%
300.19%
269.16%
221.39%
214.02%
Schedules of Plan Contributions





Fiscal Year End
2018
2017
2016
2015
2014
Actuarially Determined Contribution [c]
$13,222,781
$11,107,872
$10,734,470
$10,017,697
$9,220,181
Contributions in Relation to the Actuarially
 Determined Contribution [c]
$(13,222,781)
$(11,107,872)
$(10,734,470)
$(10,017,697)
$(9,220,181)
Contribution Deficiency (Excess)
$0
$0
$0
$0
$0
Covered Employee Payroll [d]
$55,301,410
$56,388,660
$56,837,487
$57,065,623
$53,054,308
Contributions as a Percentage of Covered Employee Payroll
23.91%
19.70%
18.89%
17.55%
17.38%
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 3.00 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
 
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015,  amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
110

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued) 

 
SAFETY FIRE PLAN [a][e]





Measurement Period
2018
2017
2016
2015
2014
Total Pension Liability
Service Costs
$4,690,651
$4,691,377
$3,982,592
$4,038,459
$4,022,753
Interest on Total Pension Liability
19,788,058
19,273,519
18,906,125
18,125,192
17,409,125
Changes of Benefit Terms
-
-
-
-
-
Changes in Assumptions
(1,346,780)
16,102,827
-
(4,419,326)
-
Difference Between Expected and Actual Experience
(1,205,127)
(3,292,736)
880,783
(357,892)
-
Benefit Payments [b]
(14,518,038)
(13,914,493)
(13,350,272)
(12,266,190)
(11,440,930)
Net Change in Total Pension Liability
$7,408,764
$22,860,494
$10,419,228
$5,120,243
$9,990,948
Total Pension Liability - Beginning
284,221,668
261,361,174
250,941,946
245,821,703
235,830,755
Total Pension Liability - Ending [1]
$291,630,432
$284,221,668
$261,361,174
$250,941,946
$245,821,703
Plan Fiduciary Net Position
Contributions - Employer
$6,452,089
$5,766,115
$5,299,399
$4,717,136
$4,243,095
Contributions - Employee
1,612,168
1,585,475
1,575,291
1,496,855
1,485,484
Net Investment Income
16,662,233
20,512,738
920,604
4,369,856
29,300,590
Other Miscellaneous Income
-
-
-
-
-
Benefit Payments [b]
(14,518,038)
(13,914,493)
(13,350,272)
(12,266,190)
(11,440,930)
Plan to Plan Resource Movement
(487)
-
-
(13)
-
Administrative Expense
(311,742)
(275,179)
(117,046)
(216,134)
-
Other Misc Income/(Expense)
(592,003)
-
-
-
-
Net Change in Plan Fiduciary Net Position
$9,304,220
$13,674,656
$(5,672,024)
$(1,898,490)
$23,588,239
Plan Fiduciary Net Position - Beginning
$200,055,512
$186,380,856
$192,052,880
$193,951,370
$170,363,131
Plan Fiduciary Net Position - Ending [2]
209,359,732
200,055,512
186,380,856
192,052,880
193,951,370
Plan Net Pension Liability / (Asset) - [1]-[2]
$82,270,700
$84,166,156
$74,980,318
$58,889,066
$51,870,333
Plan Fiduciary Net Position as a Percentage 
of Covered Employee Payroll
71.79%
70.39%
71.31%
76.53%
78.90%
Covered  Employee Payroll
$17,260,904
$17,071,347
$16,365,695
$16,338,791
$15,554,085
Plan Net Pension Liability / (Asset) as a Percentage 
of Covered Employee Payroll
476.63%
493.03%
458.16%
360.42%
333.48%
Schedules of Plan Contributions





Fiscal Year End
2018
2017
2016
2015
2014
Actuarially Determined Contribution [c]
$6,452,089
$5,766,115
$5,299,399
$4,717,136
$4,243,095
Contributions in Relation to the Actuarially
 Determined Contribution [c]
$(6,452,089)
$(5,766,115)
$(5,299,399)
$(4,717,136)
$(4,243,095)
Contribution Deficiency (Excess)
$0
$0
$0
$0
$0
Covered Employee Payroll [d]
$17,260,904
$17,071,347
$16,365,695
$16,338,791
$15,554,085
Contributions as a Percentage of Covered Employee Payroll
37.38%
33.78%
32.38%
28.87%
27.28%
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 3.00 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
 
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015,  amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
111

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued) 

 
SAFETY POLICE PLAN [a][e]





Measurement Period
2018
2017
2016
2015
2014
Total Pension Liability
Service Costs
$10,220,547
$10,633,847
$9,484,234
$8,534,322
$8,823,744
Interest on Total Pension Liability
34,128,107
32,733,299
31,506,218
29,736,286
28,279,962
Changes of Benefit Terms
-
-
-
-
-
Changes in Assumptions
(2,726,217)
29,167,825
-
(7,760,962)
-
Difference Between Expected and Actual Experience
1,792,996
(3,619,242)
4,042,528
872,107
-
Benefit Payments [b]
(23,362,241)
(22,076,716)
(20,226,151)
(19,077,307)
(17,776,028)
Net Change in Total Pension Liability
$20,053,192
$46,839,013
$24,806,829
$12,304,446
$19,327,678
Total Pension Liability - Beginning
484,820,257
437,981,244
413,174,415
400,869,969
381,542,291
Total Pension Liability - Ending [1]
$504,873,449
$484,820,257
$437,981,244
$413,174,415
400,869,969
Plan Fiduciary Net Position
Contributions - Employer
$15,159,139
$14,646,334
$13,792,487
$12,287,267
$10,750,572
Contributions - Employee
3,650,956
3,426,099
3,794,305
3,238,371
2,920,326
Net Investment Income
25,183,248
30,690,942
1,419,472
6,082,288
41,170,702
Other Miscellaneous Income
-
-
-
-
-
Benefit Payments [b]
(23,362,241)
(22,076,716)
(20,226,151)
(19,077,307)
(17,776,028)
Plan to Plan Resource Movement
(740)
-
40,308
-
-
Administrative Expense
(468,655)
(405,238)
(168,097)
(313,848)
-
Other Misc Income/(Expense)
(889,985)
-
-
-
-
Net Change in Plan Fiduciary Net Position
$19,271,722
$26,281,421
$(1,347,676)
$2,216,771
$37,065,572
Plan Fiduciary Net Position - Beginning
$300,752,643
$274,471,222
$275,818,898
$273,602,127
$236,536,555
Plan Fiduciary Net Position - Ending [2]
320,024,365
300,752,643
274,471,222
275,818,898
273,602,127
Plan Net Pension Liability / (Asset) - [1]-[2]
$184,849,084
$184,067,614
$163,510,022
$137,355,517
$127,267,842
Plan Fiduciary Net Position as a Percentage 
of Covered Employee Payroll
63.39%
62.03%
62.67%
66.76%
68.25%
Covered  Employee Payroll
$34,555,725
$35,225,410
$35,046,314
$30,842,116
$30,496,107
Plan Net Pension Liability / (Asset) as a Percentage 
of Covered Employee Payroll
534.93%
522.54%
466.55%
445.35%
417.32%
Schedules of Plan Contributions





Fiscal Year End
2018
2017
2016
2015
2014
Actuarially Determined Contribution [c]
$15,159,139
$14,646,334
$13,792,487
$12,287,267
$10,750,572
Contributions in Relation to the Actuarially
 Determined Contribution [c]
$(15,159,139)
$(14,646,334)
$(13,792,487)
$(12,287,267)
$(10,750,572)
Contribution Deficiency (Excess)
$0
$0
$0
$0
$0
Covered Employee Payroll [d]
$34,555,725
$35,225,410
$35,046,314
$30,842,116
$30,496,107
Contributions as a Percentage of Covered Employee Payroll
43.87%
41.58%
39.36%
39.84%
35.25%
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 3.00 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
 
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015,  amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
112

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN - SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS 





Total OPEB liability [a]
2019
2018

Service Cost
$1,975,894
$2,149,804

Interest
6,986,837
7,329,180

Difference between expected and actual experience
(762,025)
(6,042,345)

Changes of assumptions and methods
-
(5,330,662)

Benefit payments
(4,507,862)
(5,050,000)

Net Change in Total OPEB Liability
3,692,844
(6,944,023)

Total OPEB Liability - beginning
140,014,779
146,958,802

Total OPEB Liability - ending (a)
$143,707,623
$140,014,779


Plan Fiduciary Net Position

Contributions - employer
$7,527,447
$5,050,000

Net investment income
2,017,934
3,011,528

Benefit payments
(4,507,862)
(5,050,000)

Administrative expense
(188,705)
(180,556)

Net change in Plan Fiduciary Net Position
4,848,814
2,830,972

Plan Fiduciary Net Position - beginning
61,606,436
58,775,464

Plan Fiduciary Net Position - ending (b)
66,455,250
61,606,436

Plan's Net OPEB Liability - ending (a)-(b)
$77,252,373
$78,408,343


Plan Fiduciary Net Position as a percentage of the Total OPEB Liability
46.24%
44.00%

Covered employee payroll
$46,166,357
$44,930,761

Plan Net OPEB Liability as percentage of covered employee payroll
167.33%
174.51%

[a] additional years' information sill be dsiplayed as it becomes available
113

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
SCHEDULE OF OPEB CONTRIBUTIONS 
 Last Ten Fiscal Years

Year Ended
June 30
Actuarially
 Determined
Contributions in
Relation
Contribution
Deficiency
Covered
Contributions
As a Percentage
of Covered

Date
Contributions (ADC)
To ADC
(Excess)
Payroll
Payroll

2010
$9,495,763
$6,283,456
$3,212,307
$63,685,205
9.87%

2011
9,495,763
5,509,340
3,986,423
60,284,949
9.14%

2012
8,006,053
16,832,576
(8,826,523)
60,284,949
27.92%

2013
8,006,053
10,292,900
(2,286,847)
56,277,827
18.29%

2014
6,539,299
6,950,125
(410,826)
53,368,986
13.02%

2015
6,539,299
8,038,622
(1,499,323)
50,985,920
15.77%

2016
7,530,301
5,645,839
1,884,462
44,930,761
12.57%

2017
7,530,031
5,050,000
2,480,031
44,930,761
11.24%

2018
6,973,711
7,527,447
(553,736)
46,166,357
16.31%

2019
6,973,711
7,940,057
(966,346)
39,698,602
20.00%
114

img606d.png
115

img573b.png
116

CITY OF BAKERSFIELD
Supplementary Information

Contents
Pages(s)
General Fund
Balance Sheet
120


Schedule of Revenues by Function - Budget and Actual
121


Schedule of Expenditures by Division - Budget and Actual
122


Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Public Safety and Vital Services Funds

122
Special Revenue Funds

Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual

125
Debt Service Fund

Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual

131
Capital Projects Funds

Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual

133
Internal Service Funds

Combining Statement of Net Position
136


Combining Statement of Activities and Changes in Net Position
137


Combining Statement of Cash Flows
138
Fiduciary Funds

Statement of Changes in Assets and Liabilities - Fiduciary Funds (Agency)
139


Combining Statements of Fiduciary Net Position
140


Combining Statements of Changes in Fiduciary Net Position
142


Non-Major Governmental Funds

Combining Balance Sheet


Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances

146
Long-term Debt Recorded in Private Purpose Trust Fund

148

117

General Fund
This fund was established to account for the revenues and expenditures to carry out basic governmental activities of the City of Bakersfield such as general government, public safety, public works and community services.
Revenues are recorded by source, i.e., taxes, licenses and permits, etc. Expenditures are made primarily on current day-to-day operations and are recorded by major functional classifications and by operating departments.
This fund accounts for all financial transactions not accounted for in another fund.

118




img27c2.png
119

CITY OF BAKERSFIELD
Balance Sheet
General Fund
June 30, 2019


General Fund
Assets:
Cash and investments
$16,468,459
Accounts receivable, net
794,606
Interest receivable
290,105
Due from other governmental agencies
29,187,262
Due from other funds
18,649,197
Prepaid items
12,755
Total assets
$65,402,384
Liabilities, Deferred Inflows  of Resources and Fund Balance:
Liabilities:
Accounts payable
$5,505,434
Advances from grantors and third parties
2,028,323
Total liabilities
7,533,757
Deferred Inflows of Resources:
Deferred revenue
3,235,695
Fund Balance:
Nonspendable
51,479
Committed
Cash basis reserve
26,463,604
Contractual obligations
1,024,784
Appropriations for new year budget
19,750,000
Assigned
Petty cash
28,370
Non-contractual encumbrances
459,964
Compensated absences
2,164,894
Unassigned
4,689,839
Total fund balance
54,632,934
Total liabilities, deferred inflows of resources and fund balance
$65,402,386
120

CITY OF BAKERSFIELD
Schedule of Revenues by Function - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2019





Budget
Actual
Variance with
Final Budget
Revenues:
Taxes:
Property taxes
$80,339,100
$83,543,561
$3,204,461
Sales and use taxes
88,144,000
94,622,228
6,478,228
Property transfer tax
1,000,000
1,524,996
524,996
Utility franchise tax
5,240,000
5,277,780
37,780
Business license tax
4,180,000
4,043,883
(136,117)
Total taxes
178,903,100
189,012,448
10,109,348
Licenses and permits:
Building permits
1,700,000
1,865,269
165,269
Planning permits
56,625
90,752
34,127
Public works permits
624,000
638,639
14,639
Police permits
326,700
405,038
78,338
Other licenses and permits
201,270
172,571
(28,699)
Total licenses and permits
2,908,595
3,172,269
263,674
Intergovernmental:
Federal grants
2,835,172
1,582,522
(1,252,650)
State of California
3,207,576
2,847,139
(360,437)
Other grants
590,665
272,501
(318,164)
Total intergovernmental
6,633,413
4,702,162
(1,931,251)
Charges for services:
Building
3,172,500
3,255,143
82,643
Planning
391,236
606,570
215,334
Public works
1,870,250
1,113,556
(756,694)
Police
706,000
1,056,100
350,100
Fire
5,900,000
6,149,280
249,280
Recreation and parks
860,300
949,707
89,407
Interfund charges
11,111,000
11,610,710
499,710
Other charges
187,000
208,230
21,230
Total charges for services
24,198,286
24,949,296
751,010
Fines, forfeitures, and assessments
731,000
911,966
180,966
Miscellaneous:
Interest income
327,500
958,546
631,046
Net increase (decrease) in the fair value of investments
-
455,011
455,011
Contributions and donations
111,510
123,155
11,645
Other income
974,937
1,448,179
473,242
Total miscellaneous
1,413,947
2,984,891
1,570,944
Total revenues
$214,788,341
$225,733,032
$10,944,691

121

CITY OF BAKERSFIELD
Schedule of Expenditures by Division - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2019







Budget
Actual
Variance with
Final Budget
General Government:
Mayor & City council
$406,607
$374,134
$32,473
City manager
1,177,641
1,130,645
46,996
City clerk
822,010
724,843
97,167
Human resources
1,363,281
1,177,738
185,543
Information technology
4,897,713
4,639,369
258,344
Financial services
3,097,956
2,872,044
225,912
City attorney
2,106,497
1,831,316
275,181
Total general government
13,871,705
12,750,089
1,121,616
Public Safety:
Public safety - Police
95,657,897
95,677,601
(19,704)
Public safety - Fire
40,868,398
39,033,631
1,834,767
Total public safety
136,526,295
134,711,232
1,815,063
Public Works:
Administration
534,700
517,992
16,708
Engineering
6,185,556
5,651,360
534,196
General services
9,613,830
9,037,013
576,817
Streets and roads
8,033,257
7,661,240
372,017
Total public works
24,367,343
22,867,605
1,499,738
Recreation and Parks:
Administration
1,186,435
1,142,340
44,095
Recreation
3,052,111
2,997,842
54,269
Parks
16,571,740
16,195,829
375,911
Total recreation and parks
20,810,286
20,336,011
474,275
Development Services:
Planning
3,520,065
2,234,765
1,285,300
Building
5,955,573
5,466,605
488,968
Total development services
9,475,638
7,701,370
1,774,268
Non-departmental
10,558,854
9,220,222
1,338,632
Contingency
24,400
-
24,400
Total General Fund Expenditures
$215,634,521
$207,586,529
$8,047,992
122

CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Public Safety and Vital Services Funds (sub-fund of General Fund)

 

PSVS Funds


PSVS General Fund
PSVS Capital Outlay
Total
PSVS
Funds
Revenues:
Taxes
$17,135,994
$-
$17,135,994
Interest income
18,311
-
18,311
Total revenues
17,154,305
-
17,154,305
Expenditures
Current:
Capital outlay
-
1,114,556
1,114,556
Total expenditures
-
(1,114,556)
(1,114,556)
Excess (deficiency) of revenues
over (under) expenditures
17,154,305
(1,114,556)
16,039,749
Other financing sources (uses):
Transfers in
-
2,488,500
2,488,500
Transfers out
2,488,500
-
2,488,500
Total other financing sources (uses)
2,488,500
2,488,500
4,977,000
Fund balances - July 1 
-
-
-
Fund balances - June 30
$19,642,805
$1,373,944
$21,016,749
123

CITY OF BAKERSFIELD
Special Revenue Funds
These funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.
Transient Occupancy Taxes Fund is used to account for Transient Occupancy Tax Revenues (Hotel Tax) and expenditures funded by this revenue source. The Rabobank Arena and Convention Center and Bakersfield Ice Sports Center operating revenues and expenditures are recorded in this fund. This fund is also used to account for duties performed by Visit Bakersfield.
Community Development Block Grant Fund is used to account for resources provided by the Federal Housing and Community Development Act  of 1974 for the elimination of slums and blight, housing conservation and improvements of community services.
Neighborhood Stabilization Fund is used to account for resources provided by the Federal Housing and Economic Recovery Act of 2008 to address congressionally identified needs of abandoned and foreclosed homes in the City. These funds are used for down payment assistance, acquisition of Real Estate Owned (REO) lender assets properties that have been foreclosed upon for redevelopment, rehabilitation of acquired residential structures, and demolition of blighted structures.
Gas Tax & Road Fund is used to account for the City's share, based upon population, of state gasoline taxes. State law requires these gasoline taxes be used to maintain streets or for major street construction. This fund also accounts for the resources provided by the Moving Ahead for Progress in the 21st Century Act (MAP21). Congestion Mitigation and Air Quality (CMAQ) funds are used in the metropolitan Bakersfield area to fund transportation projects in the Transportation Improvement Program. The Regional Surface Transportation Program (STP) is funded by Federal aid functionally classified higher than local road or rural minor collector routes. The Transportation Enhancement Activities (TEA) Program projects have a direct relationship to the intermodal transportation system by function, proximity, or impact. Lastly, the Highway Bridge Replacement and Rehabilitation Program (HBRR) allows each local agency two bridge replacement projects and two miscellaneous projects per year.
State (TDA) Transportation Fund is used to account for three Transportation Development Act (TDA) funding sources. Article 3 funds must be used to construct facilities that specifically benefit pedestrians and/or bicyclists. Article 4 funds are Local Transportation and State Transit Assistance Funds. These resources are used to cover the City's maintenance and operation costs of the Bakersfield Amtrak Railway Station. The City is the owner of the station and leases the facility to Amtrak, who operates the transit service. Article 4 funds may also be used for various improvements at bus stops throughout the City. Article 8 funds represent the City's allocation of the 1/4% of sales tax authorized by Senate Bill (SB) 325. State law requires these sales tax dollars be used for street purposes. These funds are received and expended by the City as lead agency servicing the local road network. All three revenue resources are accounted for individually as required by the State of California but are combined for financial reporting purposes. The City currently receives only Article 3 and Article 4 money.
State Safety Fund is used to account for specific revenue received for certain Police and Fire related programs. The City Police Department has a share of traffic fine resources which are transferred to the General Fund to assist in funding the cost of traffic safety and control devices and State of California monies from the Supplemental Law Enforcement Services grant. The Fire Department operates a local Certified Unified Program Agency (CUPA) which is required for state and federal environmental regulation. These revenue sources are accounted for individually as required by the State, but combined for financial reporting purposes.
Redevelopment Successor Agency Housing Fund was created on February 1, 2012, pursuant to the provisions of the Redevelopment Restructuring Act. The City has chosen to assume the housing functions and take over the housing assets of the former Redevelopment Agency.
124

CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2019

Transient Occupancy Taxes

Budget
Actual
Variance with
Final Budget
Revenues
Taxes
$9,700,000
$9,943,109
$243,109
Licenses and permits
-
-
-
Intergovernmental
-
-
-
Charges for services
9,383,558
8,700,059
(683,499)
Fines, forfeitures, and assessments
-
-
-
Interest income
30,000
117,291
87,291
Loan payments
-
-
-
Contributions and donations
1,200,000
1,200,000
-
Other income
-
-
-
Total revenues
20,313,558
19,960,459
(353,099)
Expenditures
Current:
General government
10,777,540
9,891,488
886,052
Public safety - Police
-
-
-
Public safety - Fire
-
-
-
Public works
-
-
-
Recreation and parks
-
-
-
Development services
-
-
-
Non-departmental
3,136,900
3,136,900
-
Capital outlay:
Transportation:
Traffic control
-
-
-
Streets / Freeways
-
-
-
Bridges
-
-
-
Curbs, gutters and sidewalks
-
-
-
Public facilities:
Parks and landscaping
-
-
-
Other improvements
-
-
-
Total expenditures
13,914,440
13,028,388
886,052
Excess (deficiency) of revenues over (under) expenditures
6,399,118
6,932,071
532,953
Other financing sources (uses):
Transfers out
(7,782,543)
(7,791,897)
(9,354)
Total other financing sources (uses)
(7,782,543)
(7,791,897)
(9,354)
Net change in fund balances
(1,383,425)
(859,826)
523,599
Fund balances - beginning
1,862,655
1,862,655
-
Fund balances - ending
$479,230
$1,002,829
$523,599
125



 



Community Development Block Grant
Neighborhood Stabilization
Budget
Actual
Variance with
Final Budget
Budget
Actual
Variance with
Final Budget
$-
$-
$-
$-
$-
$-
-
-
-
-
-
-
11,879,294
3,300,238
(8,579,056)
141,352
-
(141,352)
-
-
-
-
-
-
-
-
-
-
-
-
-
1,073
1,073
-
-
-
175,868
326,479
150,611
-
45,983
45,983
-
-
-
-
-
-
-
8,751
8,751
-
-
-
12,055,162
3,636,541
(8,418,621)
141,352
45,983
(95,369)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,185,922
2,407,213
5,778,709
141,352
-
141,352
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,558,372
511,105
2,047,267
-
-
-
316,000
47,823
268,177
-
-
-
566,235
75,041
491,194
-
-
-
11,626,529
3,041,182
8,585,347
141,352
-
141,352
428,633
595,359
166,726
-
45,983
45,983
(507,546)
(507,545)
(1)
-
-
-
(507,546)
(507,545)
(1)
-
-
-
(78,913)
87,814
166,727
-
45,983
45,983
529,095
529,095
-
325,888
325,888
-
$450,182
$616,909
$166,727
$325,888
$371,871
$45,983
126

CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (continued) 
Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2019

Gas Tax & Road Fund

Budget
Actual
Variance with
Final Budget
Revenues
Taxes
$-
$-
$-
Licenses and permits
-
-
-
Intergovernmental
348,813,998
77,576,105
(271,237,893)
Charges for services
-
-
-
Fines, forfeitures, and assessments
15,000
56,499
41,499
Interest income
130,000
370,085
240,085
Loan payments
-
-
-
Contributions and donations
-
-
-
Other income
-
199
199
Total revenues
348,958,998
78,002,888
(270,956,110)
Expenditures
Current:
General government
-
-
-
Public safety - Police
-
-
-
Public safety - Fire
-
-
-
Public works
3,272,463
3,266,451
6,012
Recreation and parks
-
-
-
Development services
-
-
-
Non-departmental
-
-
-
Capital outlay:
Transportation:
Traffic control
1,136,024
427,314
708,710
Streets / Freeways
347,161,412
74,419,117
272,742,295
Bridges
11,295,301
2,084,695
9,210,606
Curbs, gutters and sidewalks
1,292,471
90,396
1,202,075
Public facilities:
Parks and landscaping
-
-
-
Other improvements
-
-
-
Total expenditures
364,157,671
80,287,973
283,869,698
Excess (deficiency) of revenues over (under) expenditures
(15,198,673)
(2,285,085)
12,913,588
Other financing sources (uses):
Transfers out
-
-
-
Total other financing sources (uses)
-
-
-
Net change in fund balances
(15,198,673)
(2,285,085)
12,913,588
Fund balances - beginning
15,187,842
15,187,842
-
Fund balances - ending
$(10,831)
$12,902,757
$12,913,588
127



 



State (TDA) Transportation
State Safety Fund
Budget
Actual
Variance with
Final Budget
Budget
Actual
Variance with
Final Budget
$-
$-
$-
$-
$-
$-
-
-
-
318,000
311,666
(6,334)
2,455,925
1,174,306
(1,281,619)
872,808
879,596
6,788
-
-
-
1,260,400
1,325,342
64,942
-
-
-
1,200,000
1,585,189
385,189
3,000
8,434
5,434
22,000
79,209
57,209
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,458,925
1,182,740
(1,276,185)
3,673,208
4,181,002
507,794
-
-
-
-
-
-
-
-
-
1,768,612
1,351,800
416,812
-
-
-
1,638,834
1,583,127
55,707
539,176
395,695
143,481
-
-
-
45,595
22,875
22,720
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
125,000
125,000
-
-
-
-
-
-
-
-
-
-
1,751,154
639,170
1,111,984
-
-
-
2,460,925
1,182,740
1,278,185
3,407,446
2,934,927
472,519
(2,000)
-
2,000
265,762
1,246,075
980,313
-
-
-
(1,230,000)
(1,230,000)
-
-
-
-
(1,230,000)
(1,230,000)
-
(2,000)
-
2,000
(964,238)
16,075
980,313
-
-
-
2,899,567
2,899,567
-
$(2,000)
$-
$2,000
$1,935,329
$2,915,642
$980,313
128

CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (continued) 
Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2019

Redevelopment Successor Agency - Housing

Budget
Actual
Variance with
Final Budget
Revenues
Taxes
$182,007
$-
$(182,007)
Licenses and permits
-
-
-
Intergovernmental
-
-
-
Charges for services
175,577
175,621
44
Fines, forfeitures, and assessments
-
-
-
Interest income
9,000
56,451
47,451
Loan payments
-
-
-
Contributions and donations
-
-
-
Other income
255,000
480,344
225,344
Total revenues
621,584
712,416
90,832
Expenditures
Current:
General government
-
-
-
Public safety - Police
-
-
-
Public safety - Fire
-
-
-
Public works
-
-
-
Recreation and parks
-
-
-
Development services
648,746
307,254
341,492
Non-departmental
-
-
-
Capital outlay:
Transportation:
Traffic control
-
-
-
Streets / Freeways
-
-
-
Bridges
-
-
-
Curbs, gutters and sidewalks
-
-
-
Public facilities:
Parks and landscaping
-
-
-
Other improvements
272,193
53,977
218,216
Total expenditures
920,939
361,231
559,708
Excess (deficiency) of revenues over (under) expenditures
(299,355)
351,185
650,540
Other financing sources (uses):
Transfers out
-
-
-
Total other financing sources (uses)
-
-
-
Net change in fund balances
(299,355)
351,185
650,540
Fund balances - beginning
1,817,384
1,817,384
-
Fund balances - ending
$1,518,029
$2,168,569
$650,540
129



 



Totals
Budget
Actual
Variance with
Final Budget
$9,882,007
$9,943,109
$61,102
318,000
311,666
(6,334)
364,163,377
82,930,245
(281,233,132)
10,819,535
10,201,022
(618,513)
1,215,000
1,641,688
426,688
194,000
632,543
438,543
175,868
372,462
196,594
1,200,000
1,200,000
-
255,000
489,294
234,294
388,222,787
107,722,029
(280,500,758)
10,777,540
9,891,488
886,052
1,768,612
1,351,800
416,812
1,638,834
1,583,127
55,707
3,811,639
3,662,146
149,493
45,595
22,875
22,720
8,976,020
2,714,467
6,261,553
3,136,900
3,136,900
-
1,136,024
427,314
708,710
347,161,412
74,419,117
272,742,295
11,295,301
2,084,695
9,210,606
3,975,843
726,501
3,249,342
316,000
47,823
268,177
2,589,582
768,188
1,821,394
396,629,302
100,836,441
295,792,861
(8,406,515)
6,885,588
15,292,103
(9,520,089)
(9,529,442)
(9,353)
(9,520,089)
(9,529,442)
(9,353)
(17,926,604)
(2,643,854)
15,282,750
22,622,431
22,622,431
-
$4,695,827
$19,978,577
$15,282,750
130

CITY OF BAKERSFIELD
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Debt Service Fund
For the Fiscal Year Ended June 30, 2019


General Obligation Debt

Budget
Actual
Variance with
Final Budget
Revenues:
Interest income
$-
$-
$-
Total revenues
-
-
-
Expenditures:
Debt service:
Principal retirement
1,311,650
635,085
676,565
Interest and fiscal charges
73,724
51,545
22,179
Total expenditures
1,385,374
686,630
698,744
Deficiency of revenues under expenditures
(1,385,374)
(686,630)
698,744
Other financing sources:
Transfers in
(1,301,196)
686,630
1,987,826
Total other financing sources
(1,301,196)
686,630
1,987,826
Net change in fund balance
(2,686,570)
-
2,686,570
Fund balance - beginning
(397,359)
-
397,359
Fund balance - ending
$(3,083,929)
$-
$3,083,929

131

Capital Projects Funds
These funds account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds and Trust Funds.
Capital Outlay Fund is used to account for the cost of capital projects financed by general revenues and grant/loan proceeds for recreational facilities.
Park Improvement Fund is used to account for funds collected for residential park development (Ordinance No. 3646). Fees are collected based on the development's share of the cost to develop, improve, construct or enhance a neighborhood park (Ordinance No. 3327).
Transportation Development Fund is used to account for funds collected from fees paid to mitigate the traffic impacts to the regional circulation system caused by a development project. The fees are paid when a building permit for the development project is obtained, and are based upon the amount of traffic the development will generate. With these fees, the City constructs projects that have been identified as necessary to maintain the level of services required by the 2010 General Plan for the regional transportation network. This is a joint City and Kern County program which affects the entire metropolitan area. Fees are collected with the building permit and are based on the relative impact each land use has on the transportation network. The fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and revised to reflect updated costs and growth projections. Revenue from fees collected may also be used to service bonded debt incurred in Capital Improvement Construction.

132

CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - All Capital Projects Funds
For the Fiscal Year Ended June 30, 2019

Capital Outlay
Park Improvement Fund

Budget
Actual
Variance with
Final Budget
Budget
Actual
Variance with
Final Budget
Revenues:
Taxes
$5,685,000
$5,673,495
$(11,505)
$-
$-
$-
Intergovernmental
976,375
578,024
(398,351)
-
-
-
Charges for services
77,454
234,927
157,473
-
-
-
Fines, forfeitures, and assessments
107,100
80,519
(26,581)
1,475,000
2,204,604
729,604
Interest income
220,508
884,155
663,647
50,000
148,038
98,038
Other income
760,509
10,311
(750,198)
-
23,305
23,305
Total revenues
7,826,946
7,461,431
(365,515)
1,525,000
2,375,947
850,947
Expenditures:
Current:
General government
-
-
-
-
-
-
Public works
-
-
-
-
-
-
Non-departmental
2,057,313
323,877
1,733,436
-
-
-
Capital outlay:
Transportation:
Traffic control
-
-
-
-
-
-
Streets
7,509,351
4,717,679
2,791,672
-
-
-
Streets / Freeways
49,760,496
9,716,470
40,044,026
-
-
-
Public facilities:
Buildings
7,185,541
2,030,336
5,155,205
-
-
-
Parks and landscaping
1,719,522
1,027,985
691,537
3,849,706
2,667,137
1,182,569
Land acquisition
-
-
-
1,660,825
-
1,660,825
Other improvements
1,895,079
730,331
1,164,748
302,315
200,496
101,819
Equipment:
Computers
142,728
94,869
47,859
-
-
-
Non-automotive
1,382,525
590,935
791,590
-
-
-
Total expenditures
71,652,555
19,232,482
52,420,073
5,812,846
2,867,633
2,945,213
Excess (deficiency) of revenues
over (under) expenditures
(63,825,609)
(11,771,051)
52,054,558
(4,287,846)
(491,686)
3,796,160
Other financing sources (uses):
Transfers in
12,554,860
11,238,500
(1,316,360)
-
-
-
Transfers out
(1,316,360)
-
1,316,360
-
-
-
Total other financing sources (uses)
11,238,500
11,238,500
-
-
-
-
Net change in fund balances
(52,587,109)
(532,551)
52,054,558
(4,287,846)
(491,686)
3,796,160
Fund balances - beginning 
56,092,122
56,092,122
-
5,297,380
5,297,380
-
Fund balances - ending
$3,505,013
$55,559,571
$52,054,558
$1,009,534
$4,805,694
$3,796,160
Internal Service Funds
These funds are used to account for the financing of goods or services provided by one department or agency to other
133



 



Transportation Development
Totals
Budget
Actual
Variance with
Final Budget
Budget
Actual
Variance with
Final Budget
$-
$-
$-
$5,685,000
$5,673,495
$(11,505)
4,536
4,536
-
980,911
582,560
(398,351)
39,342
50,736
11,394
116,796
285,663
168,867
11,000,000
15,219,759
4,219,759
12,582,100
17,504,882
4,922,782
519,312
1,294,736
775,424
789,820
2,326,929
1,537,109
-
-
-
760,509
33,616
(726,893)
11,563,190
16,569,767
5,006,577
20,915,136
26,407,145
5,492,009
341,500
208,074
133,426
341,500
208,074
133,426
841,537
780,623
60,914
841,537
780,623
60,914
6,052
-
6,052
2,063,365
323,877
1,739,488
691,210
217,279
473,931
691,210
217,279
473,931
9,156,201
3,290,034
5,866,167
16,665,552
8,007,713
8,657,839
49,519,566
11,332,459
38,187,107
99,280,062
21,048,929
78,231,133
-
-
-
7,185,541
2,030,336
5,155,205
-
-
-
5,569,228
3,695,122
1,874,106
-
-
-
1,660,825
-
1,660,825
-
-
-
2,197,394
930,827
1,266,567
-
-
-
142,728
94,869
47,859
-
-
-
1,382,525
590,935
791,590
60,556,066
15,828,469
44,727,597
138,021,467
37,928,584
100,092,883
(48,992,876)
741,298
49,734,174
(117,106,331)
(11,521,439)
105,584,892
9,000,000
-
(9,000,000)
21,554,860
11,238,500
(10,316,360)
(9,000,000)
-
9,000,000
(10,316,360)
-
10,316,360
-
-
-
11,238,500
11,238,500
-
(48,992,876)
741,298
49,734,174
(105,867,831)
(282,939)
105,584,892
50,810,615
50,810,615
-
112,200,117
112,200,117
-
$1,817,739
$51,551,913
$49,734,174
$6,332,286
$111,917,178
$105,584,892
134

departments or agencies of the City on a cost-reimbursement basis.
Self-Insurance Fund is used to account for the cost of operating a self-insurance program as follows:
With regard to workers' compensation, the City is self-insured for the first $500,000 of each injury or occurrence and is a member of California Public Entity Insurance Authority (CPEIA) which provides $5,000,000 of excess coverage to protect against catastrophic type losses. Funding for this program is provided by interdepartmental charges varying by employee classification and their industrial injury loss experience.
With regard to general and auto liability, the City is self-insured for the first $1,000,000 of each accident or occurrence and is a member of the Authority for California Cities Excess Liability (ACCEL) which provides excess commercial insurance in the amount of $10,000,000. Funding for this program is provided by interdepartmental charges.
Equipment Management Fund is used to account for the cost of operating and maintaining a maintenance facility for vehicular, telecommunications and computer equipment used by other City departments. Such costs are billed to other departments via established rates which are based upon actual cost. Actual costs include maintenance, repair, and replacement cost of shop and automotive equipment.
135

CITY OF BAKERSFIELD
Combining Statement of Net Position
All Internal Service Funds
June 30, 2019

Self-
Insurance
Equipment Management
Total
Assets:
Current assets:
Cash and investments
$28,553,487
$37,221,627
$65,775,114
Accounts receivable, net
545
24,706
25,251
Interest receivable
135,818
178,413
314,231
Notes/loans receivable
117,684
293,162
410,846
Prepayments and inventories
20,401
1,089,675
1,110,076
Total current assets
28,827,935
38,807,583
67,635,518
Noncurrent assets:
Capital assets:
Depreciable buildings, property, equipment and infrastructure, net
-
41,999,533
41,999,533
Total assets
28,827,935
80,807,116
109,635,051
Deferred Outflows of Resources:
Deferred pensions
119,948
1,741,893
1,861,841
Deferred other post-employment benefits
17,401
278,746
296,147
Total deferred outflows of resources
137,349
2,020,639
2,157,988
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
387,817
1,500,246
1,888,063
Claims payable
5,772,301
-
5,772,301
Workers' compensation claims
6,933,500
-
6,933,500
Compensated absences payable
-
202,176
202,176
Total current liabilities
13,093,618
1,702,422
14,796,040
Noncurrent liabilities:
Workers' compensation claims
35,821,500
-
35,821,500
Compensated absences payable
53,868
374,841
428,709
Net pension liability
548,582
9,401,863
9,950,445
Net other post-employment benefits liability
152,752
2,446,957
2,599,709
Total noncurrent liabilities
36,576,702
12,223,661
48,800,363
Total liabilities
49,670,320
13,926,083
63,596,403
Deferred Inflows of Resources:
Deferred pensions
35,029
520,180
555,209
Deferred other post-employment benefits
14,125
226,266
240,391
Total deferred inflows of resources
49,154
746,446
795,600
Net Position:
Net investment in capital assets
-
41,999,533
41,999,533
Unrestricted
(20,754,190)
26,155,693
5,401,503
Total net position
$(20,754,190)
$68,155,226
$47,401,036
136

CITY OF BAKERSFIELD
Combining Statement of Activities and Changes in Net Position
All Internal Service Funds
For the Fiscal Year Ended June 30, 2019



Self-
Insurance
Equipment Management
Totals
Operating revenues:
Intergovernmental
$-
$281,324
$281,324
Charges for services
11,937,247
27,944,365
39,881,612
Cost recoveries
1,456,153
19,753
1,475,906
Miscellaneous
65,536
312,779
378,315
Total operating revenues
13,458,936
28,558,221
42,017,157
Operating expenses:
General and administrative
11,217,042
19,132,128
30,349,170
Workers' compensation payments
2,633,609
-
2,633,609
Claims paid
36,412
-
36,412
Depreciation and amortization
-
7,219,150
7,219,150
Compensated absences
6,296
46,382
52,678
Total operating expenses
13,893,359
26,397,660
40,291,019
Operating income (loss)
(434,423)
2,160,561
1,726,138
Nonoperating revenues (expenses):
Interest income
724,812
939,322
1,664,134
Gain/(loss) on sale of capital assets
-
93,414
93,414
Income (loss) before transfers
and capital contributions
290,389
3,193,297
3,483,686
Capital contributions
-
863,900
863,900
Transfers in
-
4,346,322
4,346,322
Transfers out
(148,943)
-
(148,943)
Change in net position
141,446
8,403,519
8,544,965
Total Net Position -
Beginning of Year - as Restated
(20,895,636)
59,751,707
38,856,071
Total Net Position - End of Year
$(20,754,190)
$68,155,226
$47,401,036

137

CITY OF BAKERSFIELD
Combining Statement of Cash Flows
All Internal Service Funds
For the Fiscal Year Ended June 30, 2019


Self-
Insurance
Equipment Management
Totals
Cash flows from operating activities:
Cash received from:
Customers
$12,260,606
$29,007,226
$41,267,832
Prior year reimbursements and cost recoveries
1,456,153
19,753
1,475,906
Cash paid to:
Suppliers
(9,853,198)
(13,303,186)
(23,156,384)
Employees
(2,966,352)
(4,999,879)
(7,966,231)
Net cash provided (used) by operating activities
897,209
10,723,914
11,621,123
Cash flows from noncapital financing activities:
Cash transferred from other funds
-
4,346,322
4,346,322
Cash transferred to other funds
(148,943)
-
(148,943)
Net cash provided (used) by noncapital financing activities
(148,943)
4,346,322
4,197,379
Cash flows from capital and related financing activities:
Purchase of capital assets
-
(10,906,098)
(10,906,098)
Proceeds from sale of capital assets
-
203,926
203,926
Net cash (used) by capital and related financing activities
-
(10,702,172)
(10,702,172)
Cash flows from investing activities:
Interest received
554,030
718,617
1,272,647
Net increase (decrease) in the fair value of investments
162,098
190,360
352,458
Net cash provided (used) by investing activities
716,128
908,977
1,625,105
Net increase (decrease) in cash and investments
1,464,394
5,277,041
6,741,435
Cash and investments - Beginning of year
27,089,093
31,944,586
59,033,679
Cash and investments - End of year
$28,553,487
$37,221,627
$65,775,114
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Operating income (loss)
$(434,423)
$2,160,561
$1,726,138
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense
-
7,219,150
7,219,150
(Increase) decrease in accounts receivable
257,823
468,758
726,581
(Increase) decrease in inventories
-
(5,628)
(5,628)
Decrease in prepaid items
(15,156)
-
(15,156)
Increase (decrease) in accounts payable
113,378
697,589
810,967
Increase (decrease) in workers' compensation claims
962,650
-
962,650
Increase (decrease) in compensated absences
6,296
46,382
52,678
Increase (decrease) in net pension liability
(29,449)
(396,345)
(425,794)
Increase (decrease) in deferred outflows/inflows of resources for pensions
44,025
612,840
656,865
Increase (decrease) in other post-employment benefits liability
(1,494)
(20,978)
(22,472)
Increase (decrease) in deferred outflows/inflows of resources for OPEB
(6,441)
(58,415)
(64,856)
Net cash provided (used) by operating activities
$897,209
$10,723,914
$11,621,123
Noncash investing, capital, and financing activities:
Contribution of equipment from other departments
$-
$863,900
$863,900
138

CITY OF BAKERSFIELD
Statement of Changes in Assets and Liabilities
Fiduciary Funds (Agency)
For the Fiscal Year Ended June 30, 2019

Balance
 July 01, 2018
Additions
Deletions
Balance
June 30, 2019
Special Deposits Fund
Assets:
Cash and investments
$23,756,711
$107,925,648
$108,090,821
$23,591,538
Interest receivable
1,896
4,444
1,896
4,444
Accounts receivable
84,752
1,161,995
1,139,837
106,910
Due from other governmental agencies
175,787
634,857
644,547
166,097
Total assets
$24,019,146
$109,726,944
$109,877,101
$23,868,989
Liabilities:
Payables:
Deposits
$24,019,146
$109,726,944
$109,877,101
$23,868,989
Total liabilities
$24,019,146
$109,726,944
$109,877,101
$23,868,989

Improvement Districts Fund
Assets:
Cash and investments
$11,032,204
$761,681
$1,768,413
$10,025,472
Interest receivable
15,084
13,801
1,583
27,302
Due from other governmental agencies
8,358
2,920
3,978
7,300
Total assets
$11,055,646
$778,402
$1,773,974
$10,060,074
Liabilities:
Payables:
Deposits
5,205,462
988,821
491,415
5,702,868
Accrued bond interest
775,183
632,206
775,183
632,206
Bonds
5,075,000
3,725,000
5,075,000
3,725,000
Total liabilities
$11,055,645
$5,346,027
$6,341,598
$10,060,074
Total - All Agency Funds
Assets:
Cash and investments
$34,788,915
$108,687,329
$109,859,234
$33,617,010
Interest receivable
16,980
18,245
3,479
31,746
Accounts receivable
84,752
1,161,995
1,139,837
106,910
Due from other governmental agencies
184,145
637,777
648,525
173,397
Total assets
$35,074,792
$110,505,346
$111,651,075
$33,929,063
Liabilities:
Payables:
Deposits
29,224,608
110,715,765
110,368,516
29,571,857
Accrued bond interest
775,183
632,206
775,183
632,206
Bonds
5,075,000
3,725,000
5,075,000
3,725,000
Total liabilities
$35,074,791
$115,072,971
$116,218,699
$33,929,063
139

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2019

Redevelopment Successor Agency - Trust
Planning Habitat Trust
Total
Private Purpose
Trust Funds
Assets:
Current assets:
Cash and investments
$3,855,866
$13,995,390
$17,851,256
Interest receivable
16,743
67,191
83,934
Total current assets
3,872,609
14,062,581
17,935,190
Noncurrent assets:
Land held for resale
60,895
-
60,895
Total noncurrent assets
60,895
-
60,895
Total assets
3,933,504
14,062,581
17,996,085
Liabilities:
Payables:
Advances from grantors and third parties
3,504,005
-
3,504,005
Bonds
2,390,000
-
2,390,000
Notes
15,181,840
-
15,181,840
Total liabilities
21,075,845
-
21,075,845
Net Position:
Held in trust for:
Individuals, organizations, and other governments
(17,142,341)
14,062,581
(3,079,760)
Total Net Position
$(17,142,341)
$14,062,581
$(3,079,760)
140

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
June 30, 2019

OPEB Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Assets:
Cash and investments
$72,477,718
$655,033
$73,132,751
Interest receivable
-
4,276
4,276
Total assets
72,477,718
659,309
73,137,027
Net Position:
Held in trust for -
Pension/other post-employment benefits
72,477,718
659,309
73,137,027
Total Net Position
$72,477,718
$659,309
$73,137,027

141

CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position
Private Purpose Trust Funds
For the Fiscal Year Ended June 30, 2019

Redevelopment Successor Agency - Trust
Planning Habitat Trust
Total
Private Purpose
Trust Funds
Additions:
Developer fees
$-
$892,258
$892,258
Successor agency property tax deposits
3,496,580
-
3,496,580
Intergovernmental
-
-
-
Charges for services 
3,136,900
-
3,136,900
Contribution from Successor Housing Agency 
-
-
-
Other income
(346,994)
-
(346,994)
Interest income
-
291,291
291,291
Total additions
6,286,486
1,183,549
7,470,035
Deductions:
Purchase of uninhabited land
-
1,060,793
1,060,793
Obligation retirement
3,796,712
-
3,796,712
Total deductions
3,796,712
1,060,793
4,857,505
Change in net position
2,489,774
122,756
2,612,530
Net position - beginning of year
(19,632,115)
13,939,825
(5,692,290)
Net position - end of year
$(17,142,341)
$14,062,581
$(3,079,760)

142

CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
For the Fiscal Year Ended June 30, 2019

OPEB Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Additions:
Contributions to pooled investments
$7,940,057
$-
$7,940,057
Interest income
4,882,723
21,473
4,904,196
Total additions
12,822,780
21,473
12,844,253
Deductions:
Benefits
6,604,006
100,854
6,704,860
Administrative expenses
196,306
6,400
202,706
Total deductions
6,800,312
107,254
6,907,566
Change in net position
6,022,468
(85,781)
5,936,687
Beginning of year
66,455,250
745,091
67,200,341
End of year
$72,477,718
$659,310
$73,137,028

143

CITY OF BAKERSFIELD
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2019



Special Revenue Funds

Neighborhood Stabilization
High Speed Rail
State (TDA) Transportation
Assets:
Cash and investments
$351,871
$-
$63,239
Accounts receivable, net
6,233,854
-
-
Interest receivable
-
-
1,168
Due from other governmental agencies
-
-
229,994
Notes/loans receivable
-
-
-
Total assets
$6,585,725
$-
$294,401
Liabilities, Deferred Inflows of Resources, and Fund Balances:
Liabilities:
Accounts payable
$-
$-
$87,970
Advances from grantors and third parties
-
-
206,431
Total liabilities
-
-
294,401
Deferred Inflows of Resources:
Deferred revenue
6,213,854
-
-
Fund Balances:
Restricted
371,871
-
-
Total liabilities, deferred inflows
 of resources, and fund balances
$6,585,725
$-
$294,401
144



 




         Special Revenue Funds
Debt
Service Fund

State Safety
Redevelopment Successor Agency - Housing
General Obligation Debt
Total
Non-Major
Governmental
Funds
$2,960,963
$2,209,232
$-
$5,585,305
78,973
206
-
6,313,033
14,219
10,609
-
25,996
4,356
-
-
234,350
-
22,719,433
-
22,719,433
$3,058,511
$24,939,480
$-
$34,878,117
$142,871
$51,478
$-
$282,319
(1)
22,719,433
-
22,925,863
142,870
22,770,911
-
23,208,182
-
-
-
6,213,854
2,915,641
2,168,569
-
5,456,081
$3,058,511
$24,939,480
$-
$34,878,117

145

CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2019

Special Revenue Funds

Neighborhood
Stabilization
High Speed
 Rail
State (TDA)
Transportation
Revenues:
Licenses and permits
$-
$-
$-
Intergovernmental
-
-
1,174,306
Charges for services
-
-
-
Fines, forfeitures and assessments
-
-
-
Interest income
-
-
8,434
Loan payments
45,983
-
-
Other income
-
-
-
Total revenues
45,983
-
1,182,740
Expenditures
Current:
Public safety - Police
-
-
-
Public safety - Fire
-
-
-
Public works
-
-
395,696
Recreation and parks
-
-
22,875
Development services
-
-
-
Capital outlay
-
-
764,169
Debt service:
Principal retirement
-
-
-
Interest and fiscal charges
-
-
-
Total expenditures
-
-
1,182,740
Excess (deficiency) of revenues
over (under) expenditures
45,983
-
-
Other financing sources (uses):
Transfers in
-
-
-
Transfers out
-
-
-
Total other financing sources (uses)
-
-
-
Net change in fund balances
45,983
-
-
Fund balances - beginning - as restated
325,888
-
-
Fund balances - ending
$371,871
$-
$-
146



 



Special Revenue Funds
Debt
Service Fund

State
Safety
Redevelopment Successor Agency
- Housing
General Obligation Debt
Total
Non-Major
Governmental
Funds
$311,666
$-
$-
$311,666
879,596
-
-
2,053,902
1,325,342
175,621
-
1,500,963
1,585,189
-
-
1,585,189
79,209
56,450
-
144,093
-
-
-
45,983
-
480,344
-
480,344
4,181,002
712,415
-
6,122,140
1,351,800
-
-
1,351,800
1,583,127
-
-
1,583,127
-
-
-
395,696
-
-
-
22,875
-
307,253
-
307,253
-
53,977
-
818,146
-
-
635,085
635,085
-
-
51,545
51,545
2,934,927
361,230
686,630
5,165,527
1,246,075
351,185
(686,630)
956,613
-
-
686,630
686,630
(1,230,000)
-
-
(1,230,000)
(1,230,000)
-
686,630
(543,370)
16,075
351,185
-
413,243
2,899,566
1,817,384
-
5,042,838
$2,915,641
$2,168,569
$-
$5,456,081

147

CITY OF BAKERSFIELD
Long-term Debt Recorded in Private Purpose Trust Fund




REDEVELOPMENT SUCCESSOR AGENCY
$2,090,000 Tax Allocation Bond to be used for construction of public
improvements for new developments on 18th and 19th Streets, and improvements to 
the Mill Creek Linear Park. The funds were dispersed in July 2009. The interest rate
is 7.5%, with payments commencing August 2010 through August 2029.
$1,500,000
$1,240,000 Tax Allocation Bond to be used for infrastructure improvements for
the Mill Creek Linear Park Canal at South Millcreek. The funds were dispersed in
July 2009. The interest rate is 7.25%, with payments commencing August 2010
through August 2029.
890,000
Total Bonds
$2,390,000
Loans/Contracts:
$1,000,000 HUD Section 108 Loan, 2003 (Agency Agreement #RA 03-016) - due
in annual principal installments of $27,000 to $82,000 commencing August 1,
2004; interest ranging from 1.61% to 4.76%.
$367,000
$1,600,000 HUD Section 108 Loan, 2005 (Agency Agreement #RA 06-020) for
construction of Fire Station No. 5 - due in annual principal installments of
$58,000 to $137,000 commencing August 1, 2009; interest ranging from 4.96% to 5.77%.
898,000
$3,750,000 HUD Section 108 Loan, 2007 (Agency Agreement # RA 06-022)
Loan proceeds are dedicated to the Mill Creek South Mixed-Use project and will
go toward the acquisition and clean-up of a six acre parcel. Due in annual principal
installments of $136,000 to $321,000 commencing August 1, 2008; interest
ranging from 2.62% to 5.42%.
2,308,000
$10,000,000 Bakersfield Redevelopment Agency Loan with I-bank to help finance
the Mill Creek Linear Park and Canal Refurbishment Project. Only $6,933,445 of the loan
was dispersed through fiscal year 2009. Annual principal installments of $217,383 to $512,446 
commencing on August 1, 2009 through August 2037; interest rate at 3.11%.
7,495,283
$2,000,000 Loan with the City of Bakersfield Equipment Fund to provide 
construction assistance required for the 19th Street Senior Plaza Development.
 Funds were disbursed June 2009. The loan has a 5% interest rate and a seven year 
payment period commencing July 2013.
245,912
148

CITY OF BAKERSFIELD
Long-term Debt Recorded in Private Purpose Trust Fund




$950,000 Loan with the City of Bakersfield Equipment Fund to pre-purchase an 
easement to facilitate the development of the Chelsea Housing project and the 
Southeast Mill Creek commercial area. The loan has a 3% interest rate and a five 
year payment period commencing July 2013.
120,540
$1,500,000 Loan with the City of Bakersfield Self-Insurance Fund to provide 
construction assistance required for the Courtyard Family Apartments located west 
of S Street, between 13th and 14th Streets at S. Mill Creek. Funds were disbursed in 
September 2009. The loan has a 5% interest rate and seven year payment period commencing July 2013.
147,105
$17,000,000 Reimbursement to the City for (a) refunding of 1993 Tax Allocation
 Bonds, (b) 1987 COP Convention Improvement Project, and (c) the
 construction, equipping and furnishing of a multipurpose area (the Arena Project)
 per Agreement #97-2. Agreement is for two payments of $850,000 each year,
 from March 1997 to June 2022.
3,600,000
Total Loans/Contracts Payable
$15,181,840
Total Successor Agency
$17,571,840

Annual requirements to amortize the principal and interest on long-term debt of Redevelopment Successor Agency at June 30, 2019 is as follows:



Redevelopment Successor Agency (Private Purpose Trust Fund)

Year ending
Principal
Interest


Bonds
Loans/Contracts
Total
Bonds
Loans/Contracts
Total


2020
$145,000
$2,366,837
$2,511,837
$171,656
$410,986
$582,642

2021
160,000
1,882,463
2,042,463
160,363
381,901
542,264

2022
170,000
1,914,932
2,084,932
148,144
351,862
500,006

2023
185,000
748,696
933,696
135,000
319,993
454,993

2024
200,000
782,762
982,762
120,744
286,280
407,024

2025-2029
1,230,000
3,393,121
4,623,121
350,757
947,011
1,297,768

2030-2034
300,000
2,134,130
2,434,130
11,112
474,603
485,715

2035-2039
-
1,958,899
1,958,899
-
124,175
124,175

Totals
$2,390,000
$15,181,840
$17,571,840
$1,097,776
$3,296,811
$4,394,587



149

img61cc.png
150

Statistical Section


City of Bakersfield
Statistical Section
For the year ended 
June 30, 2019


The statistical section of the City of Bakersfield's (City) comprehensive annual financial report presents detailed information as a context for understanding what the information presented in the financial statements, note disclosures and required supplementary information says about the City's overall financial health. Where less than 10 years of data is presented, the information was not available.



Contents
Pages


Financial Trends

These schedules contain trend information to help the reader understand

 how the City's financial performance measures have changed over time
152 - 159


Revenue Capacity

These schedules contain information to help the reader assess the factors 

affecting the City's ability to generate its property and sales tax revenues.
164 - 175


Debt Capacity

These schedules present information to help the reader assess the affordability

of the City's current level of outstanding debt and the City's ability to issue

additional debt in the future.
176 - 182


Demographic and Economic Information

These schedules offer demographic and economic indicators to help the

reader understand the environment within which the City's financial

activities take place.
183 - 185


Operating Information

These schedules contain service and infrastructure data to help the reader

understand how the information in the City's financial report relates to the

services the City provides and the activities it performs. 
190 - 189




151

CITY OF BAKERSFIELD
Net Position by Component (1)
Last Ten Fiscal Years

Fiscal Year

2010 
2011 (2)
2012 
2013
Governmental Activities:
Net investment in capital assets
$1,403,412,018
$1,307,753,604
$1,259,429,698
$1,233,782,805
Restricted for:
Capital improvements
39,139,625
19,778,178
23,252,930
16,246,571
Unrestricted
135,621,596
155,889,382
165,661,544
172,822,236
Total governmental activities
net position:
1,578,173,239
1,483,421,164
1,448,344,172
1,422,851,612
% change from prior year
-1.0%
-6.0%
-2.0
-2.0%
Business-type Activities:
Net investment in capital assets
634,479,891
632,719,226
650,440,273
642,190,608
Restricted for:
Capital improvements
29,803,093
19,571,180
20,237,839
20,216,599
Sanitation districts
4,926,779
4,008,890
2,645,932
-
Unrestricted
104,096,319
115,321,423
100,529,044
107,431,948
Total business-type activities
net position
773,306,082
771,620,719
773,853,088
769,839,155
% change from prior year
3.0%
-0.2%
0.3%
-0.5%
Primary Government:
Net investment in capital assets
2,037,891,909
1,940,472,830
1,909,869,971
1,875,973,416
Restricted for:
Capital improvements
68,942,718
39,348,358
43,490,769
36,463,170
Sanitation districts
4,926,779
4,008,890
2,645,932
-
Unrestricted
239,717,915
271,210,805
266,190,588
280,254,187
Total primary government
net position
$2,351,479,321
$2,255,040,883
$2,222,197,260
$2,192,690,773
Total primary government
% change from prior year
-0.1%
-4.0%
-1.0%
-1.0%

Notes:
(1) This schedule reports using the accrual basis of accounting.
(2) There was a prior period adjustment in Governmental and/or Business-type Activities for the fiscal year. Numbers
       have been changed to reflect the restatement.
(3) There was a prior period adjustment in Governmental and/or Business-type Activities for the fiscal year. Numbers
     have been changed to reflect the restatement.
(4) The current year increase in Governmental Activities net position is primarily due to the Public Safety and Vital Services (PSVS) 
     district tax which is new source of revenue that approved by residents in November 2018.
152



 



Fiscal Year
2014(3)
2015(3)
2016(3)
2017(3)
2018(3)
2019(3)(4)
$1,279,657,792
$1,285,115,859
$1,304,906,456
$1,305,414,611
$1,301,334,674
$1,316,112,932
21,015,837
22,112,200
21,988,624
20,626,443
20,759,775
18,975,747
213,670,245
(70,066,811)
(86,460,007)
(108,783,761)
(200,714,582)
(193,801,808)
1,514,343,874
1,237,161,248
1,240,435,073
1,217,257,293
1,121,379,867
1,141,286,871
6.0%
-18.0%
0.3%
-1.9%
-7.9%
1.8%
647,105,639
648,359,633
665,588,574
670,274,189
700,725,335
720,818,075
20,209,227
20,201,556
20,201,947
20,200,000
20,200,000
20,200,000
-
-
-
-
-
-
109,292,512
78,904,795
79,243,784
85,239,027
107,755,323
107,638,278
776,607,378
747,465,984
765,034,305
775,713,216
828,680,658
848,656,353
0.8%
-4.0%
2.0%
1.5%
6.8
2.4%
1,926,763,431
1,933,475,502
1,970,495,030
1,976,138,800
2,002,060,009
2,036,931,007
41,225,064
42,313,756
42,190,571
40,826,443
40,959,775
39,175,747
-
-
-
-
-
-
322,962,757
8,837,984
(7,216,223)
(23,544,734)
(92,959,259)
(86,163,530)
$2,290,951,252
$1,984,627,242
$2,005,469,378
$1,993,420,509
$1,950,060,525
$1,989,943,224
4.0%
-13.0%
1.0%
-0.6%
-2.2%
2.0%
153

CITY OF BAKERSFIELD
Change in Net Position (1)
Last Ten Fiscal Years

Fiscal Year

2010
2011
2012
2013
Expenses
Governmental activities:
General government
$13,169,300
$12,110,455
$12,388,099
$12,919,972
Public safety:
Police
66,819,611
70,381,783
72,574,972
76,310,840
Fire
32,901,818
31,657,823
33,319,982
35,105,188
Public works
138,345,249
137,057,195
142,228,353
162,423,856
Recreation & parks
32,640,571
34,682,672
31,737,121
32,619,041
Development services
8,231,893
6,862,213
5,856,850
11,192,757
Economic/Community development (2)
12,935,695
9,303,951
28,228,468
-
Interest on long-term debt
201,442
233,606
215,411
467,848
Total governmental activities expenses
305,245,579
302,289,698
326,549,256
331,039,502
Business-type activities:
Wastewater treatment
31,978,755
42,333,794
41,550,942
40,456,986
Refuse collection
35,237,306
38,469,544
39,340,795
44,364,406
River & agricultural water
4,901,463
4,603,236
5,727,962
5,245,266
Domestic water
21,951,835
22,068,640
22,157,529
21,131,546
General aviation
372,089
407,687
404,648
430,697
Offstreet parking
177,485
165,935
128,070
162,094
Total business-type activities expenses
94,618,933
108,048,836
109,309,946
111,790,995
Total primary government expenses
399,864,512
410,338,534
435,859,202
442,830,497
Program Revenues
Governmental activities:
Charges for services:
General government
4,451,944
5,406,095
5,392,724
4,984,767
Public safety:
Police
3,347,806
3,210,604
2,649,133
2,110,160
Fire
4,601,976
4,577,004
4,866,355
5,361,766
Public works
10,561,651
8,462,168
11,651,452
19,404,900
Recreation & parks
13,530,535
13,172,982
14,153,899
14,324,137
Development services
3,492,359
2,621,537
2,907,300
4,147,598
Economic/Community development (2)
85,180
1,101
870
-
Operating grants and contributions
26,063,320
22,993,743
20,178,085
19,508,063
Capital grants and contributions
76,021,617
82,831,043
68,415,443
76,471,205
Total governmental activities
program revenues
$142,156,388
$143,276,277
$130,215,261
$146,312,596
Notes:
(1) This schedule reports using the accrual basis of accounting.
(2) Economic/Community Development became a part of Development Services. 

154

CITY OF BAKERSFIELD
Change in Net Position (1) continued
Last Ten Fiscal Years
Fiscal Year
2014
2015
2016
2017
2018
2019
$10,274,285
$21,956,276
$24,203,337
$26,395,470
$29,731,416
$31,112,425
80,192,752
82,573,675
87,314,992
95,723,028
105,006,154
106,340,979
36,086,851
35,577,067
37,257,146
41,364,912
44,560,720
46,537,182
104,347,771
158,958,537
176,573,017
171,911,928
145,529,290
126,435,754
34,641,180
22,743,488
24,993,400
26,888,569
22,613,830
20,685,570
9,940,984
9,895,523
10,018,548
12,159,620
8,533,656
8,221,265
-
-
-
-
-
-
166,472
164,046
39,729
33,429
25,060
17,358
275,650,295
331,868,612
360,400,169
374,476,956
356,000,126
339,350,533
41,979,698
41,602,539
38,038,376
41,008,233
42,103,648
43,491,976
45,336,786
42,860,924
44,067,358
46,300,746
47,971,215
52,077,032
5,051,433
4,751,158
4,395,517
4,304,663
4,198,037
4,469,652
25,613,917
25,455,862
25,756,437
27,066,771
29,205,225
26,859,329
462,690
527,279
480,754
812,527
671,124
480,368
160,613
163,840
112,986
226,999
233,746
290,799
118,605,137
115,361,602
112,851,428
119,719,939
124,382,995
127,669,156
394,255,432
447,230,214
473,251,597
494,196,895
480,383,121
467,019,689
5,019,511
3,051,375
6,178,924
4,609,597
5,618,886
5,476,706
2,938,734
2,737,294
3,138,617
4,797,619
2,989,023
3,719,138
4,937,490
5,784,964
6,375,758
6,903,928
7,242,490
7,615,334
23,780,578
20,958,923
18,625,200
17,116,439
17,159,857
16,970,725
14,348,050
14,336,209
15,665,544
16,103,058
16,481,750
17,354,482
5,221,585
5,620,567
6,076,072
5,719,860
5,909,456
6,335,650
-
-
-
-
-
-
11,633,792
12,963,571
11,217,162
12,640,678
9,165,593
11,411,248
104,071,622
101,313,136
120,303,934
100,956,230
85,533,310
78,708,716
$171,951,362
$166,766,039
$187,581,211
$168,847,409
$150,100,365
$147,591,999


155



 




Fiscal Year

2010
2011
2012
2013
Business-type activities:
Charges for services:
Wastewater treatment
$29,617,486
$30,752,515
$30,743,840
$30,825,384
Refuse collection
39,533,488
39,568,011
41,198,715
41,812,177
River & agricultural water
5,206,010
6,891,203
4,162,253
3,645,065
Domestic water
21,773,880
22,223,640
23,140,865
23,944,333
General aviation
258,353
253,868
285,461
304,357
Offstreet parking
63,383
63,120
72,094
54,420
Operating grants and contributions
7,121,598
4,018,963
4,935,165
6,243,441
Capital grants and contributions
10,189,981
1,599,202
5,011,908
982,577
Total business-type activities
program revenues
113,764,179
105,370,522
109,550,301
107,811,754
Total primary government
program revenues
255,920,567
248,646,799
239,765,562
254,124,350
Net (Expenses) Revenues:
Governmental activities
(163,089,191)
(159,013,421)
(196,333,995)
(184,726,906)
Business-type activities
19,145,246
(2,678,314)
240,355
(3,979,241)
Total primary government
Net (Expenses) Revenues
(143,943,945)
(161,691,735)
(196,093,640)
(188,706,147)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes
63,923,865
62,889,341
60,717,716
58,958,525
Sales and use taxes
50,664,334
55,281,897
67,642,794
70,418,028
Other taxes
1,910,719
728,715
889,373
926,701
Intergovernmental, unrestricted 
1,026,116
1,144,659
876,617
181,713
Unrestricted grants and contributions
19,229,234
20,701,642
21,793,292
22,725,966
Investment earnings (loss)
1,103,532
73,834
282,170
(99,546)
Miscellaneous
1,776,536
1,567,489
4,223,807
5,187,294
Gain (loss) on sale of property
14,646
17,300
132,666
192,354
Transfers
150,000
1,998,260
34,000
840,000
Total Governmental Activities
139,798,982
144,403,137
156,592,435
159,331,035
Business-type activities:
Investment earnings
3,012,666
2,136,427
1,988,022
778,444
Gain (loss) on sale of property
-
-
38,992
26,866
Transfers
(150,000)
(1,998,260)
(34,000)
(840,000)
Total business-type activities
2,862,666
138,167
1,993,014
(34,690)
Total primary government
142,661,648
144,541,304
158,585,449
159,296,345
Extraordinary gain (loss)
-
-
4,664,568
-
Change in Net Position:
Governmental activities
(23,290,209)
(14,610,284)
(39,741,560)
(25,395,871)
Business-type activities
22,007,912
(2,540,147)
2,233,369
(4,013,931)
Total primary government
$(1,282,297)
$(17,150,431)
$(37,508,191)
$(29,409,802)
156



 



Fiscal Year
2014
2015
2016
2017
2018
2019
$31,148,327
$31,437,669
$32,809,778
$33,037,996
$34,036,372
$33,916,086
42,100,981
43,447,351
45,865,520
49,502,386
51,119,909
54,158,105
4,233,197
3,640,671
2,863,750
6,712,871
7,039,283
9,643,555
24,423,144
22,478,013
20,275,368
23,232,757
26,491,151
27,744,037
303,223
315,351
327,491
325,116
347,315
318,401
67,150
78,807
134,404
146,250
114,261
160,090
8,601,559
8,749,741
7,283,587
7,173,227
9,047,127
8,406,992
17,276,815
7,402,621
16,428,109
9,741,991
4,913,540
11,977,630
128,154,396
117,550,224
125,988,007
129,872,594
133,108,958
146,324,896
300,105,758
284,316,263
313,569,218
298,720,003
283,209,323
293,916,895
(103,698,933)
(165,102,573)
(172,818,958)
(205,629,547)
(205,899,761)
(191,758,534)
9,549,259
2,188,622
13,136,579
10,152,655
8,725,963
18,655,740
(94,149,674)
(162,913,951)
(159,682,379)
(195,476,892)
(197,173,798)
(173,102,794)
66,614,853
71,382,809
74,342,784
77,680,416
79,774,412
83,543,561
72,442,177
70,366,255
70,786,792
65,348,910
72,322,068
94,622,228
988,423
1,177,810
1,176,713
1,212,122
1,308,842
1,524,996
152,400
150,529
149,089
169,836
201,875
185,685
23,829,193
25,497,714
25,381,927
24,827,775
25,140,642
25,237,610
948,629
487,532
2,295,536
283,544
1,295,749
2,708,894
1,683,631
2,173,532
1,613,591
1,707,873
1,754,210
1,474,916
36,039
(8,511,599)
826,990
273,364
248,579
101,086
1,489,500
3,584,925
1,352,562
152,000
2,032,654
4,058,397
168,184,845
166,309,507
177,925,984
171,655,840
184,079,031
213,457,373
2,424,676
1,968,113
1,728,927
1,112,586
1,878,973
5,045,825
(4,439,038)
390,791
17,545
15,670
20,370
25,454
(1,489,500)
(3,584,925)
(1,352,562)
(152,000)
(2,032,654)
(4,058,397)
(3,503,862)
(1,226,021)
393,910
976,256
(133,311)
1,012,882
164,680,983
165,083,486
178,319,894
172,632,096
183,945,720
214,470,255
(936,660)
-
-
-
54,231,181
-
64,485,912
1,206,934
5,107,026
(33,973,707)
(21,820,730)
21,698,839
6,045,397
962,601
13,530,489
11,128,911
8,592,652
19,668,622
$70,531,309
$2,169,535
$18,637,515
$(22,844,796)
$(13,228,078)
$41,367,461
157

CITY OF BAKERSFIELD
Fund Balances of Governmental Funds
Last Ten Fiscal Years (1)

2010
2011
Fiscal Year
2012
2013
General Fund
Nonspendable
$-
$13,000
$11,975
$3,372,390
Restricted
-
-
-
-
Committed
28,408,926
36,613,273
37,639,359
39,972,694
Assigned
6,902,114
6,891,881
7,281,790
7,694,831
Unassigned
10,637,121
9,131,275
10,476,517
10,865,979
Subtotal general fund
45,948,161
52,649,429
55,409,641
61,905,894
All Other Governmental Funds
Nonspendable
-
-
-
-
Restricted
8,253,366
10,051,183
23,252,930
16,246,571
Committed
61,058,527
58,304,744
57,014,597
56,799,759
Assigned
26,469,632
18,649,279
11,091,749
15,840,236
Unassigned
-
-
-
-
Subtotal all other governmental funds
95,781,525
87,005,206
91,359,276
88,886,566
Total governmental fund balance
$141,729,686
$139,654,635
$146,768,917
$150,792,460
Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.

Source: City Finance Department

158



 



2014

2015
2016
Fiscal Year
2017
2018
2019
$3,181
$1,000
$1,000
$1,025
$1,025
$51,479
-
-
-
-
-
-
13,464,704
33,140,376
28,995,204
32,559,429
29,505,463
27,488,388
34,586,157
7,254,726
4,042,766
3,567,936
2,914,844
22,403,228
6,502,852
383,987
8,783,314
3,115,798
7,077,156
4,689,839
54,556,894
40,780,089
41,822,284
39,244,188
39,498,488
54,632,934
-
944,356
44,508
7,675,326
1,212,183
942,965
21,015,837
22,112,200
21,988,624
20,626,443
20,759,775
18,975,747
62,344,103
80,565,806
64,661,547
67,725,705
68,066,549
83,018,904
58,935,265
51,017,356
51,026,114
37,747,940
46,316,269
28,958,138
-
-
-
-
-
-
142,295,205
154,639,718
137,720,793
133,775,414
136,354,776
131,895,754
$196,852,099
$195,419,807
$179,543,077
$173,019,602
$175,853,264
$186,528,688
159

CITY OF BAKERSFIELD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years



Fiscal Year


2010
2011
2012
2013
2014
Revenues:
Taxes
$128,716,315
$139,250,878
$150,761,990
$159,530,114
$163,369,374
Licenses and permits
2,192,594
1,757,045
2,321,093
2,757,307
3,644,027
Intergovernmental
90,926,017
87,577,120
83,597,649
85,698,254
112,509,497
Charges for services
24,488,013
23,982,350
34,518,514
26,237,278
28,308,972
Fines, forfeitures &
assessments
13,601,153
14,359,150
4,034,565
20,697,866
25,732,782
Interest income (loss)
2,193,269
804,910
865,071
(266,411)
1,604,668
Contributions and donations
-
-
-
1,543,041
251,775
Miscellaneous
5,830,575
4,662,521
7,346,225
8,383,499
4,710,359
Total Revenues
267,947,936
272,393,974
283,445,107
304,580,948
340,131,454
Expenditures:
General government
11,070,305
9,944,217
10,383,512
11,186,274
11,888,465
Police
63,789,358
65,985,764
68,489,176
72,745,830
77,504,268
Fire
30,921,380
29,450,014
31,390,736
33,528,360
34,895,073
Public works
24,023,808
21,967,831
25,849,496
25,274,629
25,744,355
Recreation and parks
22,281,910
22,620,636
23,599,669
25,277,659
26,309,603
Development services
7,811,683
6,486,573
6,229,936
11,994,604
11,321,294
Economic/Community development(1)
11,322,095
8,147,683
3,646,144
-
-
Non-departmental
17,103,372
12,517,816
20,283,121
13,338,729
10,726,379
Capital outlay
107,556,933
97,915,227
94,567,093
105,808,610
94,992,545
Debt service:
Principal
203,000
444,000
366,000
378,000
443,124
Interest and fiscal charges
204,673
221,920
219,865
208,424
195,434
Total Expenditures
296,288,517
275,701,681
285,024,748
299,741,119
294,020,540
Excess (deficiency) of revenues over (under) expenditures
(28,340,581)
(3,307,707)
(1,579,641)
4,839,829
46,110,914
Other financing sources (uses):
Notes/certificate proceeds
1,800,000
-
-
-
-
Transfers in
8,813,765
9,580,944
11,587,495
18,164,310
16,069,190
Transfers out
(813,765)
(8,358,944)
(12,704,555)
(18,898,910)
(16,334,090)
Reserve transfer to agency funds
-
10,656
-
-
-
Extraordinary gain
-
-
4,664,568
-
-
Total other financing
sources (uses)
9,800,000
1,232,656
3,547,508
(734,600)
(264,900)
Net change in fund balances
$(18,540,581)
$(2,075,051)
$1,967,867
$4,105,229
$45,846,014
Debt service as a percentage of
non-capital expenditures
-.1%
-4.0%
-1.0%
-1.0%
4.0%
Notes:
(1) Economic/Community Development became a part of Development Services. 
Source: City Finance Department

160



 





Fiscal Year


2015
2016
2017
2018
2019
$168,047,259
$171,344,057
$168,758,632
$178,228,594
$204,629,052
3,297,396
3,216,872
3,321,133
3,268,134
3,483,935
113,170,797
129,091,459
111,232,933
93,198,441
88,214,967
29,643,496
31,225,288
31,530,433
34,404,377
35,435,981
21,984,077
20,337,463
21,325,888
18,887,330
20,058,536
1,470,902
2,823,200
591,514
1,791,980
4,373,028
10,390
153,607
294,156
259,932
372,462
9,100,338
6,377,099
3,789,687
4,342,074
3,294,244
346,724,655
364,569,045
340,844,376
334,380,862
359,862,205
19,254,079
21,404,144
21,483,266
21,883,948
22,849,651
83,484,871
85,469,207
85,303,925
89,209,119
97,029,401
36,224,449
36,956,928
37,694,398
39,299,505
40,616,758
26,828,323
26,936,064
25,826,378
25,798,786
27,310,375
18,833,884
18,145,518
18,881,782
20,215,698
20,358,886
12,231,555
12,068,546
11,861,982
9,419,106
10,415,836
-
-
-
-
-
12,736,007
13,348,200
10,724,880
11,699,947
12,680,999
134,748,520
164,583,100
134,231,542
113,952,709
115,089,647
454,964
489,828
503,828
502,352
635,085
252,300
57,115
65,870
59,324
51,545
345,048,952
379,458,650
346,577,851
332,040,494
347,038,183
1,675,703
(14,889,605)
(5,733,475)
2,340,368
12,824,022
-
-
-
-
-
15,963,966
10,049,932
7,686,698
7,691,676
13,125,130
(17,860,400)
(10,158,904)
(7,686,698)
(7,956,681)
(13,264,112)
-
-
-
-
-
-
-
-
-
-
(1,896,434)
(108,972)
-
(265,005)
(138,982)
$(220,731)
$(14,998,577)
$(5,733,475)
$2,075,363
$12,685,040
-13.0%
1.0%
-.6%
0.2%
0.2%
161



 






Fiscal Year


2010
2011
2012
2013
2014
 

162



 





Fiscal Year


2015
2016
2017
2018
2019
163

CITY OF BAKERSFIELD
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years (1)

Fiscal
Year
General
Property
Taxes

Sales and
Use Taxes

Transient
Occupancy
Taxes

Business
License
Taxes

Utility
Franchise
Taxes

In-Lieu and
Other Taxes

Total Taxes
2010
$57,185,433
(2)
$50,664,333
$6,493,702
$3,173,514
$9,288,614
(3)
$1,910,719
$128,716,315
2011
62,889,341
(2)
55,281,897
6,851,869
3,415,351
10,083,705
(3)
728,715
139,250,878
2012
60,717,717
(2)
67,642,795
7,827,792
3,312,485
10,371,830
(3)
889,373
150,761,992
2013
65,696,957
(2)
70,418,028
8,274,240
3,372,972
10,733,798
(3)
1,034,119
159,530,114
2014
66,614,853
(2)
72,442,178
8,826,003
3,607,558
10,890,359
(3)
988,423
163,369,374
2015
71,382,809
(2)
70,366,255
9,487,984
3,730,720
11,901,681
(3)
1,177,810
168,047,259
2016
74,342,784
(2)
70,786,793
9,450,710
3,904,569
11,682,488
(3)
1,176,713
171,344,057
2017
77,680,416
(2)
65,348,909
9,577,898
3,875,410
11,063,877
(3)
1,212,122
168,758,632
2018
79,774,412
(2)
72,322,068
9,570,855
3,826,518
11,425,899
(3)
1,308,842
178,228,594
2019
83,543,561
(2)
94,622,228
9,943,109
4,043,883
10,951,275
(3)
1,524,996
204,629,052

Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.
(2) Includes Vehicle License Fee in Lieu revenue.
(3) Includes additional taxes and Utility Surcharge revenues designated by ordinance for road purposes.


Source: City Finance Department
164

CITY OF BAKERSFIELD
Principal Property Taxpayers
Current Year and Nine Years Ago

2010
2019
Taxpayer
Taxable
Assessed Value
Rank

Percentage of
Total Taxable
Assessed
Value
Taxable
Assessed Value
Rank
Percentage of
Total Taxable
Assessed
Value
Nestle Dreyers Ice Cream Company 
(formerly Nestle Holdings, Inc in 2010)
199,822,301
1
0.91%
168,340,793
2
0.58%
Chevron USA Inc.
154,136,791
2
0.71%
177,960,357
1
0.61%
Valley Plaza Mall LP (formerly Bakersfield Mall LLC in 2010)
148,547,602
3
0.68%
135,620,245
4
0.47%
California Water Service Company
88,885,268
4
0.41%
133,505,804
3
0.46%
DS Properties 18 (formerly Donahue Schriber Realty Group LLP in 2010)
83,272,732
5
0.38%
76,810,528
8
0.26%
BLC Glenwood Gardens SNF LP
80,925,397
6
0.37%
52,828,359
10
0.18%
Bright House Networks LLC
21,041
7
0.00%
-
-
Kaiser Foundation Health Plan Inc.
59,043,962
8
0.27%
73,396,962
7
0.25%
State Farm Insurance Company
57,700,000
9
0.26%
-
-
Meany Partners
55,008,772
10
0.25%
-
-
Walmart Stores Inc/Sam's Club
-
$
-
99,381,703
5
0.34%
Castle & Cook CA Inc.
-
-
101,332,585
6
0.35%
-
-
-
-
Dignity Health
-
$
-
64,963,685
9
0.22%
Total taxable assessed value of
ten (10) largest taxpayers
927,363,866
4.24%
1,084,141,021
3.72%
Total taxable assessed value of other taxpayers
20,922,946,960
95.76%
28,067,500,465
96.28%
Total taxable assessed value of all taxpayers
21,850,310,826
100.00%
29,151,641,486
100.00%


Note:
Related parties grouped together on the original source document (County's list of assessed valuations) are included in the total assessed valuation amount for each taxpayer cited. Unitary and operating nonunitary are excluded as valuation by parcel is no longer available. Secured values only reported.

Source: HDL Coren & Cone, Kern County Assessor 2018-19 Combined Tax Rolls

165

CITY OF BAKERSFIELD
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Amounts expressed in thousands

Fiscal
Year
Secured

Less:
Ended
June 30
Residential
Property
Commercial
Property
Other
Unsecured
Tax Exempt
Real Property
2010
$15,577,372
$4,030,198
$3,311,171
$878,216
1,080,957
2011
14,950,744
4,053,184
3,134,829
834,158
1,063,302
2012
14,521,636
3,832,880
3,245,619
850,899
1,104,081
2013
14,698,137
3,904,832
3,268,227
912,300
1,097,928
2014
15,592,995
4,010,392
3,575,805
791,531
1,186,061
2015
17,297,625
4,111,192
3,607,361
819,306
1,230,972
2016
18,495,838
4,238,653
3,749,127
835,424
1,321,877
2017
19,571,365
4,497,923
3,971,042
801,607
1,414,164
2018
20,569,686
4,650,981
4,085,221
767,598
1,451,354
2019
21,611,991
4,826,400
4,206,028
769,171
1,492,778

(1) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.






Source: HDL Coren & Cone, Kern County Assessor 2018-19 Combined Tax Rolls.

166



 



Total Taxable
Total
Estimated
Actual
Assessed
Value
Direct
Rate
Taxable
Value (1)
22,716,000
0.1981
Unavailable
21,909,613
0.1969
Unavailable
21,346,953
0.1956
Unavailable
21,685,568
0.1924
Unavailable
22,784,662
0.1619
Unavailable
24,604,512
0.1623
Unavailable
25,997,165
0.1616
Unavailable
27,427,773
0.1613
Unavailable
28,622,132
0.1609
Unavailable
29,920,812
0.1607
Unavailable
167

CITY OF BAKERSFIELD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years



2010
2011
2012
2013
Basic County-Wide Levy (1)
1.0000
1.0000
1.0000
1.0000
Overlapping Debt
Bakersfield School
0.0676
0.0663
0.0710
0.0681
Bakersfield School 2006E
-
-
-
-
Beardsley School
0.0548
0.0574
0.0599
0.0499
Edison School Bond
-
0.0720
0.0664
0.0694
Fairfax School
0.0330
0.0401
0.0688
0.0686
Fruitvale School Bonds
0.0610
0.0695
0.0759
0.0614
Greenfield School
0.0835
0.0783
0.0804
0.0826
Kern Community College District
0.0094
0.0101
0.0091
0.0085
Kern County Water Agency
0.0601
0.0553
0.0748
0.0540
Kern High School District
0.0431
0.0447
0.0363
0.0437
Lakeside School
0.0216
0.0188
0.0224
0.0227
Lamont School
0.0652
0.0694
0.0693
0.0615
Norris School
0.0330
0.0298
0.0327
0.0580
Panama Buena Vista School
0.0099
0.0116
0.0115
-
Rio Bravo-Greeley
0.0690
0.0741
0.0737
0.0535
Rosedale
0.0046
-
-
-
Standard Bond
-
-
-
-
Standard Bond 2006A
0.0258
0.0206
0.0191
0.0185
Vineland School 07-A
0.0424
0.0414
0.0423
0.0437
Total Direct & Overlapping Tax Rates (2)
1.6840
1.7594
1.8136
1.7641
City Share of 1% Levy (3)
0.1846
0.1852
0.1851
0.1851
Total Direct Rate (4)
0.1981
0.1969
0.1956
0.1924
(1) In 1978 the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed
amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved
bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all
overlapping rates apply to all City property owners.
(3) City's share of 1.00% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Educational Revenue Augmentation Fund (ERAF) general fund tax shifts are not included in tax ratio figures.  The effective City rate after ERAF is 9.9%.
(4) Total Direct Rate is the weighted average of all individual direct rates applied by the City of Bakersfield.
Source: HDL Coren & Cone (Kern County Auditor-Controller's Office)

168



 



2014
2015
2016
2017
2018
2019
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
0.0360
0.0186
0.0339
0.0204
0.0522
0.0440
-
-
-
-
-
0.0009
0.0486
0.0406
0.0480
0.0723
0.0638
0.0671
0.0687
0.0678
0.0716
0.0706
0.0755
0.0738
0.0607
0.0692
0.0712
0.0631
0.1075
0.1009
0.0678
0.0595
0.0591
0.0516
0.0534
0.0731
0.0843
0.0544
0.0445
0.0438
0.0419
0.0398
0.0126
0.0105
0.0136
0.0132
0.0363
0.0337
0.0569
0.0525
0.0537
0.0585
0.0785
0.0707
0.0392
0.0361
0.0324
0.0260
0.0533
0.0512
0.0283
0.0254
0.0267
0.0236
0.0264
0.0242
0.0681
0.0630
0.0657
0.0681
0.0682
0.0639
0.0500
0.0489
0.0498
0.0565
0.0579
0.0373
0.0194
0.0294
0.0330
0.0243
0.0224
0.0288
0.0769
0.0649
0.0581
0.0629
0.0687
0.0517
-
-
-
-
-
-
-
0.0208
0.0219
0.0403
0.0770
0.0602
0.0152
0.0110
0.0140
-
-
-
0.0418
0.0431
0.0456
0.0441
0.0453
0.0238
1.7745
1.7157
1.7428
1.7393
1.9283
1.8451
0.1839
0.1839
0.1839
0.1839
0.0184
0.1839
0.1619
0.1623
0.1616
0.1613
0.1609
0.1607
169

CITY OF BAKERSFIELD
Property Tax Levies and Collections
Last Ten Fiscal Years (1)



Collected within the
Fiscal Year of the Levy

Total Collections to Date
Fiscal Year
Ended
June 30
Tax Levied
for the
Fiscal Year
Amount
Percentage
of Levy
Collections
in Subsequent
Years (2)
Amount
Percentage
of Levy (3)
2010
$37,878,353
$36,683,727
96.85%
$2,308,846
$38,992,573
102.94%
2011
38,752,737
38,136,143
98.41%
437,340
38,573,483
99.54%
2012
37,333,785
36,574,775
97.97%
417,383
36,992,158
99.08%
2013
38,448,465
37,544,318
97.65%
159,495
37,703,813
98.06%
2014
39,887,750
39,344,783
98.64%
375,679
39,720,462
99.58%
2015
42,153,405
41,301,939
97.98%
166,794
41,468,733
98.38%
2016
44,309,063
43,455,549
98.07%
254,923
43,710,472
98.65%
2017
47,433,693
46,803,045
98.67%
4,914
46,807,959
98.68%
2018
47,385,467
46,768,741
98.70%
345,147
47,113,888
99.43%
2019
49,577,578
48,864,996
98.56%
696,193
49,561,189
99.97%


Notes:
(1) Excludes Redevelopment property tax increment.
(2) Delinquent tax collections do not include interest or penalties.
(3) Total collections to date may exceed 100% of annual levy. Delinquent tax collections are
recorded in the current levy year as the County of Kern does not give detail as to the levy
year for delinquent tax collections. This was confirmed with the County of Kern in 2014.




Source: City Finance Department

170

CITY OF BAKERSFIELD
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years

Year
State of
California
Total
Rate
2010
7.25%
7.25%
2011
7.25%
7.25%
2012
7.25%
7.25%
2013
7.25%
7.25%
2014
7.25%
7.25%
2015
7.25%
7.25%
2016
7.25%
7.25%
2017
7.25%
7.25%
2018
7.25%
7.25%
2019
8.25%
8.25%

Note: The City's sales tax rate may be changed with voter approval.
Source: California State Board of Equalization

171

CITY OF BAKERSFIELD
Taxable Sales By Market Groups
Last Ten Fiscal Years



2009
2010
2011
2012
2013
Retail Trade
$28,561,098
$32,280,545
$37,036,696
$38,989,918
$40,678,592
Accommodation and Food Services
4,337,209
4,984,589
5,499,894
5,804,784
5,944,612
Wholesale Trade
5,341,844
4,988,725
6,535,884
8,123,793
7,778,377
Manufacturing
1,258,875
920,291
1,446,129
1,497,904
1,538,166
Undefined
2,405,765
319,221
370,144
448,437
548,715
Other Services (except Public Administration)
637,143
663,589
711,347
724,436
746,553
Real Estate and Rental and Leasing
651,871
642,417
763,850
906,225
901,585
Information
260,506
440,904
428,770
443,637
506,719
Professional, Scientific, and Technical Services
299,787
312,434
419,806
428,747
484,389
Construction
198,574
180,195
291,102
261,800
241,316
Health Care and Social Assistance
80,998
94,099
104,289
88,963
120,418
Administrative and Support and Waste Management and Remediation Services
124,704
115,922
118,599
129,550
127,768
Arts, Entertainment, and Recreation
104,259
127,399
134,174
102,882
103,518
Mining, Quarrying, and Oil and Gas Extraction
386,543
484,213
956,607
1,227,581
1,160,785
Educational Services
45,458
58,300
55,532
52,478
57,507
Transportation and Warehousing
50,606
167,351
80,427
94,195
40,089
Public Administration
17,991
38,125
44,045
35,201
33,896
Agriculture, Forestry, Fishing and Hunting
14,970
13,890
14,719
11,198
15,379
Utilities
10,408
24,063
406
6,363
8,519
Total
$44,788,609
$46,856,272
$55,012,420
$59,378,092
$61,036,903
Note: 2018 data is the most recent information available.
Source: Avenu Insights



172



 



2014
2015
2016
2017
2018
$41,517,816
$41,036,537
$39,730,476
$43,169,538
$43,237,982
6,485,452
6,805,196
6,751,056
7,702,022
7,868,895
7,987,257
6,656,416
5,445,964
5,448,683
6,333,252
1,717,717
1,604,038
1,114,789
1,220,390
1,297,343
667,295
878,316
730,457
847,955
1,054,876
785,792
829,575
802,029
802,409
873,959
767,983
751,340
707,369
642,059
677,931
677,816
682,841
523,662
565,029
561,137
442,687
299,955
316,647
292,180
365,128
498,131
397,481
308,395
226,378
303,891
127,409
135,153
136,670
171,343
217,919
172,602
170,424
163,450
147,372
155,301
115,211
128,096
122,749
138,952
148,228
721,500
91,267
78,440
43,226
88,084
49,338
43,200
47,044
65,779
69,605
38,324
57,485
39,737
53,067
31,993
31,355
34,916
32,759
20,457
30,712
14,801
13,645
10,121
13,020
15,866
12,364
24,210
15,282
7,500
6,614
$62,830,850
$60,640,091
$57,077,096
$61,577,359
$63,338,716

173

CITY OF BAKERSFIELD
Sales Tax Revenue Payers By Industry
2018 and Ten Years Ago 


2008

Number of
Filers
Percent of
Total
Tax
Liability Paid
Percent of
Total $
Retail Trade
1805
38.88%
33,512,574
62.18%
Accommodation and Food Services
696
14.98%
4,823,595
8.95%
Wholesale Trade
284
6.12%
6,525,663
12.11%
Manufacturing
138
2.98%
1,524,028
2.83%
Other Services (except Public Administration)
308
6.64%
717,690
1.33%
Real Estate and Rental and Leasing
146
3.14%
787,603
1.46%
Information
0
-%
-
-%
Construction
75
1.61%
254,826
0.47%
Professional, Scientific, and Technical Services
137
2.96%
356,871
0.66%
Arts, Entertainment, and Recreation
38
0.82%
110,298
0.20%
Health Care and Social Assistance
46
1.00%
89,138
0.17%
Administrative and Support and Waste Management and Remediation Services
93
2.00%
151,719
0.28%
Educational Services
21
0.45%
50,711
0.09%
All Other
855
18.42%
4,991,413
9.27%
Total
4,642
100.00%
53,896,129
100.00%
Note: Due to confidentially issues, the names of the ten largest revenue payers are not available. The categories
presented are intended to provide alternative information regarding the souces of the City's revenue. The amounts shown are gross collections prior to refunds and collections of amounts due from prior year.
Source: Avenu Insights

174



 




2018
Number of
Filers
Percent of
Total
Tax
Liability Paid
Percent of
Total $
4511
48.99%
$43,237,982
68.26%
1641
17.82%
7,868,895
12.42%
763
8.29%
6,333,252
10.00%
439
4.77%
1,297,343
2.05%
333
3.62%
873,959
1.38%
323
3.51%
677,931
1.07%
191
2.07%
561,137
0.89%
165
1.79%
303,891
0.48%
151
1.64%
365,128
0.58%
124
1.35%
148,228
0.23%
118
1.28%
217,919
0.34%
104
1.13%
155,301
0.25%
63
0.69%
69,605
0.11%
283
3.05%
1,228,145
1.94%
9,209
100.00%
$63,338,716
100.00%


175

CITY OF BAKERSFIELD
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years





Fiscal
Year

General Obligations Bonds
Net
Bonded Debt
Total
Ratio of Net
Bonded Debt to
Assessed
Value
Population (1)
Total
Debt
Per
Capita
2010
$-
$-
$-
-%
333,847
$0.00
2011
-
-
-
-
338,952
0.00
2012
-
-
-
-
354,480
0.00
2013
-
-
-
-
359,221
0.00
2014
-
-
-
-
367,315
0.00
2015
-
-
-
-
365,504
0.00
2016
-
-
-
-
379,110
0.00
2017
-
-
-
-
383,512
0.00
2018
-
-
-
-
386,839
0.00
2019
-
-
-
-
389,211
0.00


Notes:
Includes all long-term general obligation bonded debt.
(1) State Department of Finance
Source: City Finance Department

176

img117e.png
177

CITY OF BAKERSFIELD
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years





Governmental Activities

Business-Type Activities


Revenue Bonds
Notes
Certificates of Participation
Total Governmental Activities (3)
Revenue Bonds
Bonds
2010
$-
$5,611,000
$28,465,000
$34,076,000
$241,270,507
$-
2011
-
5,167,000
26,620,000
31,787,000
238,994,444
-
2012
-
4,801,000
24,710,000
29,511,000
217,003,381
-
2013
-
4,423,000
22,725,000
27,148,000
201,875,000
-
2014
-
4,150,049
20,640,000
24,790,049
200,236,254
-
2015
-
3,932,118
18,460,000
22,392,118
190,545,190
-
2016
-
3,442,290
16,175,000
19,617,290
187,377,613
-
2017
-
2,938,462
13,785,000
16,723,462
174,647,913
-
2018
-
2,584,240
11,275,000
13,859,240
166,998,212
-
2019
-
6,111,476
8,635,000
14,746,476
160,129,574
-
Notes:
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
(1) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are revised periodically to include data that may not have been available at the time. Personal income was used for the base of this calculation. Details can be found in the Demographic and Economic Statistics.
(2) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time. Population was used for the base of this calculation. Details can be found in the Demographic and Economic Statistics.
(3) Total Governmental Activities and Total Primary Government totals do not include Compensated Absences. 
(4) As restated.
Source: City Finance Department

178



 








            Business-Type Activities







Deferred Bond Premium
Notes
Contracts/ Loans
Capital Leases (4)
Total Business-Type Activities
Total Primary Government
Percentage of Personal Income (1) (4)
Per
Capita (2) (4)
$7,945,507
$8,991,701
$-
$-
$258,207,715
$292,283,715
1.06%
$778
7,614,444
7,521,262
-
22,138,054
276,268,204
308,055,204
4.02%
801
7,283,381
6,769,136
-
21,664,941
252,720,839
282,231,839
3.69%
796
6,621,255
6,017,009
-
21,174,195
235,687,459
262,835,459
3.34%
732
-
5,264,884
-
20,664,937
226,166,075
250,956,124
3.11%
683
-
4,512,759
246,131
20,135,757
215,439,837
237,831,955
2.89%
651
-
3,760,631
292,503
19,091,567
210,522,314
230,139,604
2.70%
607
-
3,008,504
319,400
18,730,478
196,706,295
213,429,757
2.45%
557
-
2,256,378
368,746
18,315,293
187,938,629
201,797,869
2.25%
522
-
1,504,252
314,215
17,671,298
179,619,339
194,365,815
2.08%
499


179

CITY OF BAKERSFIELD
Direct and Overlapping Debt (1)
As of June 30, 2019
2018 - 19 Assessed Valuation
$29,912,084,134
Adjusted Assessed Valuation
$29,912,084,134
Debt
Outstanding (2)
Estimated
Percentage
Applicable (3)
Estimated Share
of Overlapping
Debt
Overlapping Tax and Assessment Debt
Kern Community College District Safety
 Repair and Improvement District
$120,511,081
33.818%
$40,754,437
Kern Community College District School
 Facilities Improvement District No. 1
94,605,000
33.613
31,799,579
Kern High School District
298,151,209
53.005
158,035,048
Bakersfield City School District
90,531,619
72.656
65,776,653
Beardsley School District
22,734,188
20.704
4,706,886
Edison School District
4,419,942
0.065
2,873
Fairfax School District
9,131,481
24.666
2,252,371
Fruitvale School District
24,208,877
76.617
18,548,115
Greenfield Union School District
10,563,406
85.816
9,065,092
Lakeside Union School District
12,448,047
40.624
5,056,895
Lamont School District
1,649,137
0.019
313
Norris School District
26,385,633
60.901
16,069,114
Panama-Buena Vista Union School District
84,925,000
97.074
82,440,095
Rio Bravo-Greeley Union School District
9,628,786
2.926
281,738
Standard School District
36,650,000
0.933
341,945
Vineland School District
3,809,069
0.0004
15
Kern Delta Water District
200,000
80.727
161,454
California Statewide Community Development Authority-Community Facilities District No. 2015-02
10,755,000
100.000
10,755,000
Greenfield Union School District CFD No. 1 & No. 3
5,750,837
100.000
5,750,837
RNR School Financing Authority
104,155,000
83.994
87,483,951
Overlapping Tax and Assessment Debt
$971,213,312
$539,282,411
Overlapping General Fund Debt
Kern County Certificates of Participation
$91,981,119
32.650
$30,031,835
Kern County Pension Obligations
206,792,369
32.650
67,517,708
Certificates of Participation:
Kern County Board of Education
36,115,000
32.650
11,791,548
Kern County Community College District
28,825,000
30.367
8,753,288
Kern County Community College District Benefit
77,810,000
30.367
23,628,563
Kern High School District
83,260,000
53.005
44,131,963
Panama-Buena Vista Union School District
53,655,000
97.074
52,085,055
Fairfax School District General Fund Obligations
2,153,119
24.666
531,088
Rio Bravo-Greeley Union School District General Fund Obligations
375,000
2.926
10,973
Rosedale Union School District General Fund Obligations
9,905,000
55.792
5,526,198
Overlapping Tax Increment Debt (Successor Agency)
2,390,000
100.000
2,390,000
Overlapping General Fund Debt
$593,261,607
$246,398,219
Total Overlapping Debt
$1,564,474,919
$785,680,630
Notes:
(1)  Excluded from this schedule are: (a) all bonds which are not general obligation bonds of the City and (b) general obligation bonds issued for water utility purposes which are payable from Water Fund revenues.
(2)  Direct debt is reported net of debt service monies available. Overlapping debt is reported at gross values.
(3)  Percentage of overlapping agency's assessed valuation located within boundaries of the City.
Source: California Municipal Statistics, Inc. and City Finance Department

180



 



Direct Debt
City of Bakersfield
City of Bakersfield General Fund Obligations
$8,635,000
Long-term notes payable
$6,111,476
Total Direct and Overlapping Debt
$800,427,106
Computation of Legal Debt Margin
June 30, 2019




Legislation does not mandate a debt limit for the City of Bakersfield.
181

CITY OF BAKERSFIELD
Pledged - Revenue Coverage
Last Ten Fiscal Years


Wastewater Revenue Bonds
Fiscal

Sewer Charges
and Other
Less:
Operating
Net
Available
Debt Service (3)

Year

Revenue (1)
Expenses (2)
Revenue
Principal

Interest
Coverage (4)
2009-2010
$38,115,751
$11,928,571
$26,187,180
$1,100,000
$9,597,489
2.45
2010-2011
36,073,819
14,144,051
21,929,768
1,945,000
9,597,489
1.90
2011-2012(5)
36,769,858
12,913,038
23,856,820
2,930,000
(6)
9,597,489
1.90
2012-2013
37,901,401
13,156,437
24,744,964
2,845,000
(7)
9,451,151
2.01
2013-2014
39,610,854
14,265,421
25,345,433
3,260,000
(7)
9,959,591
1.92
20142015
40,386,623
14,195,887
26,190,736
4,360,000
(7)
8,744,990
2.00
2015-2016(8)
39,111,557
14,765,141
24,346,416
5,475,000
(7)
3,694,732
2.66
2016-2017
39,078,787
14,796,170
24,282,617
6,055,000
(7)
6,557,105
1.93
2017-2018(9)
42,356,491
17,519,378
24,837,113
5,975,000
6,270,503
2.03
2018-2019 
43,043,488
17,062,586
25,980,902
5,525,000
6,344,225
2.19

Notes:
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Operating expenses do not include interest or depreciation expenses.
(1) Includes amounts for connection fees, interest funded in bond issue and principal portion of lease revenues.
(2) Does not include the General Obligation Bonds reported in Enterprise Funds. Operating expenses exclude depreciation expense.
(3) Issued Sewer Revenue Bonds, Series 2007A and 2007B in August of 2007.
(4) Minimum coverage requirement on the Wastewater Revenue bonds is 1.25.
(5) Previous report included arbitrage expenses. Revenue has been corrected.
(6) In addition to the normal debt service amount referenced above, there was a partial bond call of $18,730,000 approved by the City Council to reduce the    principal balance of the 2007B bond down to $25 million. Sewer revenue bonds 2007B were refunded in January 2012 (Series 2012A) to change the liquidity provider from Dexia to JP Morgan Chase.
(7) In addition to the normal debt service referenced above, City Council approved partial bond calls of $5 million each year to reduce the principal
     balance of Sewer Revenue Bonds Series 2012A.
(8) Partial refunding of Sewer Revenue Bonds Series 2007A in July 2015 (Series 2015A).
(9) Corrected Operating Expenses Amount entered previously entered incorrectly. 
Source: City Finance Department

182

CITY OF BAKERSFIELD
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year
Population (1)
Personal
Income (2)
(millions)
Per Capita
Personal
Income (2)
Median
Age (3)
Education Level
as a % of
Population having
Formal Schooling (3) (4)
Elementary
School
Enrollment
Estimated
Unemployment
Rate (%) (5)
2009-2010
333,847
$7,034
$21,071
30.8
78.1
27,267
15.80%
2010-2011
338,952
7,007
20,675
29.5
77.8
27,590
15.30%
2011-2012
354,480
7,640
21,553
29.5
78.1
21,411
10.50%
2012-2013
359,221
7,862
21,887
29.8
77.8
23,422
8.40%
2013-2014
367,315
8,074
21,980
30.0
78.2
24,012
7.90%
2014-2015
365,504
8,228
22,512
30.1
78.5
24,232
9.30%
2015-2016
279,110
8,532
22,505
30.2
79.7
24,267
9.10%
2016-2017
383,512
8,713
22,718
30.4
79.6
24,299
9.20%
2017-2018(6)
386,839
8,965
23,175
30.4
79.6
26,513
7.80%
2018-2019
389,211
9,333
23,980
30.5
80.0
26,491
5.50%

Notes:
(1) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time.
(2) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are revised periodically to include data that may not have been available at the time. Information  is for Bakersfield Metropolitan area. Effective 2008-2009 information now includes Delano area.
(3) U.S. Census Bureau estimates as available for Bakersfield Metropolitan area.
(4) This column shows the percent of the City population 25 years and older who are high school graduates or higher.
(5) State of California Employment Development Department (Data shown is for Kern County).
(6) Elementary School Enrollment numbers for 2017-18 restated due to new data collection techniques by the Department of Education.

183

CITY OF BAKERSFIELD
Principal Employers (1)
Current Year and Nine Years Ago

2010
2019
Employer
Employees
Rank
Percent
of Total City
Employment
Employees
Rank
Percent
of Total City
Employment
County of Kern (1)
N/A
7,539
1
4.56%
Kern High School District (1)
4,342
2
2.62%
Bakersfield City School District
4,039
3
2.44%
Dignity Health
3,489
4
2.11%
Panama-Buena Vista Union School District
2,489
5
1.50%
Bolthouse Farms
2,110
6
1.27%
Adventist Health Bakersfield
1,973
7
1.19%
Kern Medical Center
1,800
8
1.09%
Kern County Superintendent of Schools
1,540
9
0.93%
City of Bakersfield
1,454
10
0.88%
Others
134,725
81.41%
Total
N/A
-
165,500
100.00%

(1) Not all employees are employed within the Bakersfield City Limits.
Source: City Finance Department.
Total number of employed persons in Bakersfield provided by EDD Labor Force Data.
Note: Only current data is available.



184

img06ea.png
185

CITY OF BAKERSFIELD
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years



2010
2011
2012
2013
2014
2015
Function
Governmental activities:
General government
98
106
109
110
119
126
Public safety
Police
Officers
358
380
385
389
394
404
Civilians
127
123
131
137
143
148
Fire
Firefighters and officers
179
176
177
177
177
177
Civilians
19
19
19
21
22
22
Public works
244
244
247
250
254
248
Community services
147
151
153
153
150
150
Community development
-
-
-
65
63
65
Development services
69
57
55
-
-
-
Economic/Community dev.
20
12
11
-
-
-
Business-type activities:
Wastewater treatment
55
54
56
57
59
59
Refuse collection
102
102
103
106
107
107
River & Agricultural Water (1)
28
28
28
28
28
28
General aviation
-
-
-
-
-
-
Offstreet parking
-
-
-
-
-
-
Total
1,446
1,452
1,474
1,493
1,516
1,534

(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department

186



 



2016
2017
2018
2019
123
123
124
143
404
407
407
450
148
148
151
176
177
177
177
184
22
22
23
23
244
243
247
261
146
146
148
163
63
63
63
-
-
-
-
79
-
-
-
-
59
59
61
62
107
108
109
111
28
29
29
30
-
-
-
-
-
-
-
-
1,521
1,525
1,539
1,682
187

CITY OF BAKERSFIELD
Property Value, Construction and Bank Deposits (1)
Last Ten Calendar Years



Commercial
Construction
Residential
Construction
Other
Construction

No. of
Units
Value
No. of
Units
Value
Value
2009
83
$62,088
1,097
$232,275
$86,668
2010
40
13,425
848
197,380
98,057
2011
40
41,482
422
92,313
81,984
2012
49
20,807
1,122
259,851
108,877
2013
69
15,710
1,336
312,569
157,024
2014
89
56,320
1,435
389,715
203,722
2015
70
49,806
1,391
384,819
377,510
2016
115
63,714
1,387
370,956
338,559
2017
59
61,034
1,132
332,652
312,316
2018
93
83,187
1,089
321,454
278,079

Notes:
(1) Property value and bank deposits reported in thousands.
(2) Federal Deposit Insurance Corporation
(3) Construction units and values are based on a 12 month calendar year.  June 30, 2019 data reflects the 2018 calendar year.


Source: City Finance Department
188



 



Total
Construction

No. of
Units
Value
Bank
Deposits (2)
1,180
$381,031
$4,728,745
888
308,862
5,172,880
462
215,779
5,280,515
1,171
389,535
5,626,755
1,405
485,303
6,069,764
1,524
649,757
6,421,302
1,461
812,135
3,759,961
1,502
773,229
7,141,426
1,191
706,002
7,515,635
1,182
682,720
7,702,403
189

CITY OF BAKERSFIELD
Operating Indicators by Function
Last Ten Fiscal Years

Fiscal Year

2010
2011
2012
2013
Function
Public safety - Police
Physical arrests
17,023
22,028
29,623
32,158
Parking violations
5,522
5,433
4,708
6,620
Traffic violations
12,018
10,043
9,172
11,528
Public safety - Fire
Number of calls answered
26,885
27,392
28,870
31,164
Inspections
2,896
3,355
3,276
3,660
Public works
Street resurfacing (lane miles)
49
83
129
127
Refuse collection
Refuse collected (tons/day)
112,000
111,500
108,200
111,420
Recyclables collected (tons/day)
42,000
47,000
48,215
53,350
Recreation & parks
Athletic field permits issued
6,219
5,685
10,156
9,297
Community center,
aquatics/sports admissions
379,286
440,101
473,530
475,619
River & Agricultural water (1)
New connections
954
493
301
701
Water main breaks
5
7
10
14
Average daily consumption
39,370
27,008
27,568
36,730
(thousands of gallons)
Wastewater treatment
Average daily sewage treatment
31.49 MGD
32.30 MGD
31.28 MGD
32.13 MGD
(millions of gallons)
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department

190



 





Fiscal Year



2014
2015
2016
2017
2018
2019
37,246
24,254
19,965
13,008
9,502
9,895
10,499
6,183
4,083
3,843
2,238
10,438
15,065
24,154
26,934
24,190
16,548
24,739
32,898
35,117
35,747
38,823
40,945
42,027
4,195
4,978
5,684
6,859
5,649
8,712
116
119
79
70
75
115
110,125
102,500
102,800
103,100
102,200
175,081
55,500
78,500
79,100
79,500
82,700
87,680
9,625
9,046
8,054
7,788
8,224
7,046
502,994
527,617
553,831
518,432
534,959
542,580
1,123
1,033
945
968
500
755
4
5
4
4
3
2
39,712
34,973
29,812
33,378
36,128
35,588
30.0 MGD
29.9 MGD
28.7 MGD
29.0 MGD
29.6 MGD
28.9 MGD
191

CITY OF BAKERSFIELD
Capital Asset Statistics by Function
Last Ten Fiscal Years

Fiscal Year

2010
2011
2012
2013
Function
Land (1)
Area
144.40
149.75
149.80
150.01
Public safety
Police stations/substations
4
4
4
4
Fire stations
14
14
14
14
Refuse collection
Collection trucks
57
57
53
55
Public works
Streets (miles) (2)
1,379
1,394
1,409
1,424
Streetlights
15,923
16,092
16,160
16,602
Traffic signals
359
394
394
402
Recreation & parks
Parks acreage
494
595
595
595
Parks
55
59
59
59
Swimming pools
4
4
4
4
Tennis courts
11
11
12
12
Community centers
3
3
3
3
River & Agricultural Water (3)
Water mains (miles) (2)
493
501
502
503
Fire hydrants (2)
10,220
10,301
10,441
10,581
Wastewater treatment
Sanitary sewers (miles)
1,059
1,061
1,061
1,061
Storm sewers (miles)
262
263
263
263
Maximum daily treatment capacity
57 MGD
57 MGD
57 MGD
57 MGD
(millions of gallons)

Notes:
(1) Reported in square miles.
(2) Corrected numbers for all years up to and including FY2011-12 with more accurate information provided.
(3) Departmental name change in FY2018-19 from Domestic & Agricultural water to River & Agricultural water.
Source: City Finance Department
192



 




Fiscal Year
2014
2015
2016
2017
2018
2019
150.18
150.18
150.97
151.10
151.10
151.14
3
3
3
3
3
3
14
14
14
14
14
14
57
57
57
57
57
67
1,441
1,441
1,553
1,596
1,505
1,506
16,388
16,486
16,781
17,042
18,632
18,635
410
419
420
426
428
431
623
769
769
776
810
810
59
59
59
59
59
59
4
4
4
4
4
4
12
12
12
12
12
12
3
3
3
3
3
3
505
515
525
535
589
592
10,723
10,853
11,117
11,130
11,396
11,467
1,063
1,072
1,076
1,077
1,077
1,086
265
268
269
270
270
274
57 MGD
57 MGD
57 MGD
57 MGD
57 MGD
57 MGD
193

CITY OF BAKERSFIELD
Schedule of Insurance in Force
June 30, 2019

Excess Workers' Compensation
Statutory 
Limit with a $500,000 self-insured retention.
Excess Liability
$75,000,000
Limit with a $1,000,000 self-insured retention.
Combination Crime
$5,000,000
Coverage limit, $25,000 deductible.
Airport Operations
$10,000,000
Coverage limit.
Aircraft
$10,000,000
Coverage limit.
Cyber Liability
$25,000,000
Aggregate limit $50,000 self-insured retention
Fiduciary Liability
$5,000,000
Physical Loss:
All Risk Property and Boiler
$600,000,000
Coverage on buildings and contents subject to $5,000 deductible with various sublimits.
Machinery
Auto-Physical Damage
Coverage for vehicles/equipment values up to $250,000 subject to a $10,000 deductible and vehicles/equipment values about $250,000 subject to a $100,000 deductible
Life and Medical:
Life and Accident
$2,000
Supervisory & Management employees. Each employee (basic coverage) and additional insurance equal to annual salary to nearest $1,000.
$12,000
Safety employees, each employee (basic coverage).
$30,000
Miscellaneous employees, each employee (basic coverage). 
Medical and Dental
Basic coverage plus (no lifetime maximum) 
extended benefits of 90% after $750 
deductible for medical (Blue Shield) 
or Group dental ($50 deductible for United Concordia).
Source: Liability and Physical Loss coverage is provided by the City's Risk Management.
Department. Life and Medical coverage is provided by the City's Human Resource Department.


194



 



Insurance Company
Policy Number
Expiration
Date
Annual Premium
CSAC-EIA
WC1920
07/01/2020
$893,312
ACCEL
07/01/2020
1,134,619
National Union Fire
016060820
07/01/2020
15,176
Pik West
AAPN14413352001
07/01/2020
3,175
Pik West
NAC6024885
07/01/2020
12,755
Hudson
SFD31211205
10/01/2019
11,583
CSAC
PROPERTY1920
03/31/2020
398,910
CSAC
PH1933951                   
07/01/2020
3,308
Voya Financial
0067794-4
12/31/2019
$3.00 per thousand dollar of salary, management & supervisory $2,000 plus annual salary maximum benefit $100,000.
Voya Financial
0067794-9
12/31/2019
Safety-$27.30 each permanent employee for $12,000 coverage.
Voya Financial
0067794-9
12/31/2019
Blue/White Collar Units: $68.38 each permanent employee for $30,000 coverage.
Blue Shield PPO
Health W0054380
12/31/2019
Bi-weekly rate range from $117.43
Blue Shield HMO
Health W0054380
to $643.46 per employee for medical
Blue Shield Trio
Health W0054380
based upon individual's plan coverage
Kaiser Permanente HMO
132733-1003
and plan combination and $7.66 to
Kaiser Permanente DHMO
132733-0010
$45.52 for dental. $1.27 to $4.67
United Concordia DPPO
Dental 920318-000
12/31/2019
$1.59 to $5.84 per employee for
United Concordia DHMO
Dental 920318-001
vision coverage.
195



 




Insurance Company
Policy Number
Expiration
Date
Annual Premium
Medical Eye Service HMO
Vision 16269
12/31/2019
Medical Eye Service PPO
Vision 16270

img7f4c.png
196